Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 411

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 411
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 and comprehensive loss for the year ended
December 31, 2024.

Loss on extinguishment of payable for the year ended December 31, 2024, was $0.07 million represents
the aforementioned Second Agreement transaction.

Loss on change in fair value – Loss on change in value represents the
changes in fair value related to our convertible notes and warrant liability.

Loss on change in fair value for the year ended
December 31, 2024 was $6.1 million as compared to $0.6 million for the year ended December 31, 2023, for an increase of $5.5 million. We qualified for and elected to account for the convertible notes under the fair value
option and, in doing so, bypassed the analysis of potential

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embedded derivative features. As a result, the convertible notes were recorded at fair value upon issuance and recorded as loss on change in fair value in the consolidated statements of
operations and comprehensive loss, for the year ended December 31, 2024 and 2023, respectively. The increase in the loss on change in fair value was on account of new convertible notes issued during the year which were elected to be accounted
at fair value. Also, the loss on change in fair value was mainly due to the change in fair value of January 2024 Convertible note and 2019 Convertible note

Other (expense) income – Other (expense) income consists of our proportional share of earnings and losses related to our equity
method investment as well as impairment loss, penalties and settlements, and other miscellaneous expenses.

Other expense for the year
ended December 31, 2024, was $0.2 million, compared to $0.3 million for the year ended December 31, 2023, representing a decrease of $0.1 million. The decrease was primarily due to the absence of significant miscellaneous
expenses recorded in the previous year and lower tax-related charges. This was partially offset by foreign exchange gains other income and impairment loss recorded during the year December 31, 2024.

Provision for income tax – Provision for income tax is accounted for using the asset and liability method, which requires the
recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. In addition, deferred tax assets are recorded for all future
benefits including, but not limited to, net operating losses, research and development credit carryforwards,