Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 402

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 402
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, 2025. We expanded our market in the United States, in states such as New York, Texas and California.

Cost of revenue– Cost of revenue primarily consists of consulting and payroll expenses that are assigned to building AI solutions.

Cost of
revenue decreased by $0.04 million to $0.86 million for the quarter ended March 31, 2025, compared to $0.91 million for the quarter ended March 31, 2024. There was also a decrease of $0.02 million in Cost of Revenue related
to stock-based compensation due to the completion of vesting for previously granted awards. And $ 0.02 million on account of payroll expense due to decrease in head count.

Gross profit– Gross profit is calculated as revenue less total cost of revenue. Our gross profit in future periods will depend on
a variety of factors, including market conditions that may impact our pricing, sales mix changes among our service agreements, and product mix changes between established services and new services.

Gross profit increased by $0.08 million to $1.10 million for the quarter ended March 31, 2025, compared to $1.01 million
for the quarter ended March 31, 2024, as a result of higher sales.

Selling and marketing expenses– Selling and marketing
expenses represent spending associated with promoting and selling of our services. These expenses comprise of personnel costs, travel and accommodation expenses, as well as advertising and consulting costs related to such activities.

Selling and marketing expenses for the quarter ended March 31, 2025, decreased by $0.34 million to $0.31 million as compared to
$0.65 million for the quarter ended March 31, 2024. The decrease was due to decrease in payroll expenses for selling and marketing team of $0.15 million due to decrease in head count. There was also a decrease of $0.18 million in
selling and marketing expense related to stock-based compensation due to the completion of vesting for previously granted awards.

General and administrative expenses– General and administrative expenses consist of expenses associated with general and
administrative functions of the business such as the costs of salaries, IT infrastructure, bad debt, travel, legal and accounting services, insurance, rent, software and tools, meals, other professional services activities, and certain non-income taxes.

General and administrative expenses for the quarter ended March 31, 2025,
decreased $0.04 million to $1.