Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 102

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 upon consummation of the initial business combination. The cash compensation due to the Advisor is in scope of ASC 450 Contingencies
(“ASC 450”) and the share based compensation due to the Advisor is in scope of ASC 718. The consummation of the initial business
combination is considered a loss contingency under ASC 450 and is considered a performance condition under ASC 718 and the Advisory Fee
should not be recognized until considered probable. As business combinations are not considered probable until consummated, the Company
will not recognize compensation costs related to the Advisory Fee until the consummation of the initial business combination. The unrecognized
stock-based compensation expense related to the Advisory Agreement was $607,500 as of June 30, 2025 and December 31, 2024.

18

NOTE 8 — FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

At June 30, 2025 and December 31, 2024, the Company’s marketable
securities held in the Trust Account were valued at $16,572,304 and $16,053,202, respectively. The marketable securities held in the
Trust Account must be recorded on the balance sheet at fair value and are subject to re-measurement at each balance sheet date. With
each re- measurement, the valuations will be adjusted to fair value, with the change in fair value recognized in the Company’s
statement of operations. 

The following table presents the fair value information, as of June
30, 2025 and December 31, 2024, of the Company’s financial assets that were accounted for at fair value on a recurring basis and
indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. The Company’s
marketable securities held in the Trust Account are based on dividend and interest income and market fluctuations in the value of invested
marketable securities, which are considered observable. The fair value of the marketable securities held in trust is classified within
Level 1 of the fair value hierarchy.

The following table sets forth by level within the fair value hierarchy
the Company’s assets and liabilities that were accounted for at fair value on a recurring basis:

    (Level 1)  
    (Level 2)  
    (Level 3) 
  
    As of June 30, 2025 

    Assets: 

    Treasury Trust Funds held in Trust Account 
    $16,