Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 23

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 be realized. Current income taxes are provided for in accordance with
the laws of the relevant taxing authorities.

ASC 740 prescribes a comprehensive model for how companies should recognize,
measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under
ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained
upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit
that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the
position and relevant facts. There were no unrecognized tax benefits as of June 30, 2025 or December 31, 2024. The Company recognizes
accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of
interest and penalties as of June 30, 2025 or December 31, 2024. The Company is currently not aware of any issues under review that could
result in significant payments, accruals or material deviation from its position.

The Company is considered an exempted Cayman Islands Company and
is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the
Company’s tax provision was zero for the period presented.

Covenant Fees

Pursuant to the Merger Agreement, Fusemachines is covenanted to deliver
to the Company its audited financial statements for the twelve month periods ended December 31, 2023 and 2022 (the “Fusemachines
Audited Financial Statements”) for inclusion in the registration statement on Form S-4 to be filed by the Company in connection
with the Business Combination (the “Registration Statement”), and that such Fusemachines Audited Financial Statements have
been prepared in conformity with U.S. GAAP applied on a consistent basis and in accordance with the requirements of the Public Company
Accounting Oversight Board for public companies. Fusemachines has covenanted to provide the Fusemachines Audited Financial Statements
no later than February 29, 2024, or incur delay fees in the amount equal to $35,000 for the first one-month delay to March 31, 2024 (pro-rated
for a partial month), $50,000 for the second one-month delay to April 30,