Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 150

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 150
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 regularly assess the likely outcomes of these examinations to determine the adequacy of our provision for income taxes and we believe that our financial
statements reflect adequate reserves to cover any such contingencies, there can be no assurance that the outcomes of such examinations will not have a material impact on our results of operations and cash flows. If U.S. or other foreign tax
authorities change applicable tax laws, our overall taxes could increase, and our financial condition or results of operations may be adversely impacted.

Provisions enacted by the 2017 Tax Cuts and Jobs Act (the “JOBS Act”) related to the capitalization for tax purposes of research and
experimental (“R&E”) expenditures became effective on January 1, 2022. Beginning January 1, 2022, all U.S. and non-U.S. based R&E expenditures must be capitalized and amortized over five years and 15 years, respectively.

The Company capitalizes certain costs related to internal use software acquired, modified, or developed related to the Company’s
services. These capitalized costs are primarily related to salaries and other personnel costs. Costs incurred in the preliminary stages of development are expensed as incurred. Once the application development stage has been reached, internal and
external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. Maintenance and training costs are expensed as
incurred. Capitalized software is amortized on a straight-line basis over its useful life.

Risks Related to Ownership of Pubco Securities

The ability of Public Shareholders to exercise Redemption Rights with respect to a large number of Public Shares may adversely affect the liquidity and trading of Pubco securities following Closing.

At the time of entering into the Merger Agreement, CSLM did not know
how many Public Shareholders may exercise their Redemption Rights.

The exercise of Redemption Rights with respect to a large number of
Public Shares may result in insufficient cash available to fund Fusemachines’ business and may make CSLM and Fusemachines unable to take such

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actions as may be desirable in order to optimize the capital structure of Pubco upon consummation of the Business Combination. The price of Pubco Common Stock may be volatile. If a public trading market does develop for the Pubco Common Stock, its market price is likely to be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control, including the following:

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