Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 335

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 335
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 financial information, the nonemployee vesting period was determined to be the point-in-time of the closing of the Merger as this is when the expense would have been                                                                                     
 recognized if cash had been paid for the nonemployee services. Management used the quoted market price of CSLM for the estimated measurement date fair value of the shares sold. In accordance with ASC 718, for equity- classified awards, the           
 measurement date for purposes of the fair value determination was determined to be the grant date, the date on which the measurement of the award was fixed. For the shares that were sold, management recorded the entirety of the excess of the grant   
 date fair value over the purchase price as share-based compensation expense, which increased the Accumulated deficit and Additional paid in capital on the unaudited pro forma condensed combined balance sheet. Refer to Note 4(i) for the impact of     
 this share-based payment award on the unaudited pro forma condensed combined statement of operations. The sale of shares resulted in a $0 thousand adjustment to cash as presented in the Cash and cash equivalents line item due to the effect of        
 rounding as the adjustment to record the cash received was less than $1 thousand.                                                                                                                                                                         |

| (q) | To reflect, in the No Additional Redemption Scenario, the recapitalization of Fusemachines through the                                                                                                                                                  
 contribution of 27,561,436 shares of Fusemachines Common Stock and the issuance of 18,247,899 shares of Fusemachines Pubco Common Stock, reflecting the Conversion Ratio of 0.6621, and to reflect the derecognition of the accumulated deficit of CSLM 
 which is reversed to additional paid-in capital.                                                                                                                                                                                                        |

Notwithstanding the legal form, the Business Combination will be accounted for as a reverse recapitalization in accordance with U.S. GAAP and not as a business combination under ASC 805. Under this method of accounting, CSLM, will be treated as the acquired company for accounting purposes, whereas Fusemachines will be treated as the accounting acquirer. In accordance with this method of accounting, the Business Combination will be treated as the equivalent of Fusemachines issuing shares for the net assets of CSLM, accompanied by a recapitalization. The net assets of Fusemachines will be stated 205

at historical cost, with no goodwill or other intangible assets recorded, and operations prior to the Business Combination will be those of Fusemachines. The reverse recapitalization adjustment is determined as follows (in thousands):

| Dere