Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 20

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
749  
     1 
  
    Basic and diluted net income (loss) per share 

     Numerator: 

    Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage 
    $(611,061) 
    $(607,419) 
    $                       0 
  
    Deemed dividend for remeasurement of temporary equity to redemption value 
     1,789,022  
     —  
     — 
  
    Total net income
    (loss) allocated by class 
    $1,177,961  
    $(607,419) 
    $0 
  
    Denominator:  

    Weighted-average shares outstanding 
     4,772,187  
     4,743,749  
     1 
  
    Basic and diluted net income (loss) per share 
    $0.25  
    $(0.13) 
    $(0.13)

10

Fair value of Financial Instruments

ASC Topic 820, Fair Value Measurement, defines fair value as the amount
that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants.

Fair value measurements are classified on a three-tier hierarchy as
follows:

●Level 1, defined as observable inputs such as quoted prices
(unadjusted) for identical instruments in active markets;

●Level 2, defined as inputs other than quoted prices in active
markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices
for identical or similar instruments in markets that are not active; and

●Level 3, defined as unobservable inputs in which little or
no market data exists, therefore requiring an entity to develop its own assumptions, such as calculations derived from valuation techniques
in which one or more significant inputs or significant value drivers are observable.

In many cases, if a valuation technique used to measure fair value
includes inputs from multiple levels of the fair value hierarchy described above, the lowest level of significant input determines the
placement of the entire fair value measurement in the hierarchy.

The fair value of the Company’s assets and liabilities, which
qualify as financial instruments approximates the carrying amounts represented in the balance sheet, primarily due to its short-term
nature. 

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such
instruments are derivatives or contain features that qualify as embedded derivatives in