Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 147

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 147
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 in our financial reporting; we may suffer defaults under our debt instruments; and our stock price may decline. As a privately-held company, Fusemachines was not required to evaluate its internal control over financial reporting in a manner that meets the standards of publicly traded companies required by Section 404(a) of the Sarbanes-Oxley Act. In connection with the preparation and audit of Fusemachines’ consolidated financial statements as of and for the years ended December 31, 2023 and 2022, material weaknesses were identified in its internal control over financial reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected on a timely basis. The following material weaknesses were identified:

| • |     | Fusemachines did not maintain a sufficient complement of personnel with accounting knowledge, experience and                                    
 training to appropriately analyze, record and disclose accounting matters to provide reasonable assurance of preventing material misstatements. |

| • |     | Fusemachines did not maintain an effective process over the revenue cycle, including not properly maintaining          
 adequate books and records over client projects and billing which ultimately resulted in improper revenue recognition. |

| • |     | Fusemachines did not maintain effective controls over certain information technology (“IT”)                                                                                                                                                               
 general controls for information systems that are relevant to the preparation of its consolidated financial statements. Specifically, Fusemachines currently relies on QuickBooks for its books and records as well as financial reporting needs. Because 
 QuickBooks lacks robust financial reporting capabilities as well as certain controls, the close process was manually intensive. This process resulted in significant delays and errors in the preparation of its consolidated financial statements. In    
 addition, Fusemachines did not design and maintain user access controls to ensure appropriate segregation of duties and restrict user access to its financial applications to appropriate company personnel.                                              |

Management expects to address these deficiencies by implementing remediation measures, including those that have already been taken to date, which include the following:

| • |     | the Company’s hiring of the current CFO and additional consulting resources with extensive technical 
 accounting and internal control advisory background;                                                 |

| • |     | establishing a central repository of signed contracts with periodic management review for completeness and 
 assessment of accounting implications; and                                                                 |

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| • |     | establishing a quarterly management oversight and review mechanism for identifying significant                                            
 unusual/non-recurring transactions, critical accounting and complex financial instruments and evaluating related accounting implications. |