Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 394

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 394
---
 will be returned to the holder and deemed a repayment of the note.

Amendment of the conversion price

April 2024 Convertible Note

On February 5, 2025, the conversion price of the April 2024 Convertible Promissory Notes with principal amount of $125,000 was amended to
$3.15 from the original conversion price of $4.94.

The April 2024 Convertible Notes were once again amended in April 2025 and basis the
amendment the maturity date was revised from April 5, 2025, to April 5, 2026 pursuant to the second amendment

The Company
evaluated the conversion feature of April 2024 Convertible Note offering for embedded derivatives in accordance with ASC 815 Derivatives and Hedging, and the substantial premium model in accordance with ASC 470 Debt. Based on our assessment,
separate accounting for the conversion feature of this note offering is not required and will be accounted for under the substantial premium model. Under the substantial premium model, the excess above the fair value amounting to
$113.0 thousand will be recorded as loss on extinguishment of debt in additional paid-in-capital with a corresponding debit in the unaudited condensed consolidated
interim statement of profit and loss for the three months ended March 31, 2025.

June 2024 Convertible Note

On February 5, 2025, the conversion price of the June 2024 Convertible Promissory Note with principal amount of $130,000 was amended to
$3.15 from the original conversion price of $4.94.

The Company evaluated the conversion feature of June 2024 Convertible Note offering
for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and the substantial premium model in accordance with ASC 470, Debt. Based on our assessment, separate accounting for the conversion feature of this note offering is not
required and will be accounted for under the substantial premium model. Under the substantial premium model, the excess above the fair value amounting to $114.0 thousand will be recorded as loss on extinguishment of debt in additional paid-in-capital with a corresponding debit in the unaudited condensed consolidated interim statement of profit and loss for the three months ended March 31, 2025.

September 2024 Convertible Note

On
February 5, 2025, the conversion price of the two September 2024 Convertible Promissory Notes with principal