Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 118

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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100,000 in
cash and 75,000 common shares of the post initial business combination entity (the “Advisory Fee”). The Advisory agreement
is contingent 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.

25

Critical Accounting Estimates

The preparation of financial statements and related disclosures
in conformity with accounting principles generally accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date
of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those
estimates.

We have not identified any critical accounting estimates.

Recent Accounting Pronouncements

Refer to Note 2 - Summary of Significant Accounting Policies in the
Notes to Condensed Consolidated Financial Statements.

Item 3. Quantitative and Qualitative Disclosures About Market
Risk

We are a smaller reporting company as defined by Rule 12b-2 of the
Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures

Disclosure controls and procedures are controls and other procedures
that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed
or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

As required by Rules 13a-15 and 15d-15 under the Exchange Act