Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 52

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 April 10, 2023 and September 5, 2023 to provide
consulting, advisory and related services to the Sponsor and to the Company on behalf of the Sponsor. In accordance with the Consulting
Services Agreements, the Consultant will purchase and the Sponsor will sell 75,000 shares of its Class B ordinary shares of the Company
at a price of $0.006 per share in return for such services. The Consulting Services Agreements are contingent upon the consummation of
the initial business combination. Compensation due to the Consultant is in scope of ASC 718 Compensation - Stock Compensation (“ASC
718”) and SAB Topic 5T. The consummation of the initial business combination is considered a performance condition under ASC 718
and stock based compensation should not be recognized until the performance condition is considered probable. As business combinations
are not considered probable until consummated, the Company will not recognize compensation costs related to the Consulting Services Agreements
until the consummation of the initial business combination. The unrecognized stock-based compensation expense related to the Consulting
Agreements was $819,950 as of June 30, 2025 and December 31, 2024.

Capital Markets Advisory Agreement

The Company entered into a capital markets advisory agreement (the
“Advisory Agreement”) with a service provider (the “Advisor”) on June 21, 2024 to provide capital markets advisory
services to the Company. In accordance with the Advisory Agreement, the Advisor will be paid an advisory fee comprised of $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