Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 89

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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anted to deliver
to the Company its audited financial statements for the twelve month periods ended December 31, 2023 and 2022 (the “Fusemachines
Audited Financial Statements”) for inclusion in the registration statement on Form S-4 to be filed by the Company in connection
with the Business Combination (the “Registration Statement”), and that such Fusemachines Audited Financial Statements have
been prepared in conformity with U.S. GAAP applied on a consistent basis and in accordance with the requirements of the Public Company
Accounting Oversight Board for public companies. Fusemachines has covenanted to provide the Fusemachines Audited Financial Statements
no later than February 29, 2024, or incur delay fees in the amount equal to $35,000 for the first one-month delay to March 31, 2024 (pro-rated
for a partial month), $50,000 for the second one-month delay to April 30, 2024 and thereafter $70,000 for each subsequent one-month delay
(pro-rated for any partial month). The Company determined that collection of the other receivable was not probable in June 2024 and established
a reserve for credit losses equal to the other receivable.In connection with the 2nd Amendment, the delay fees clause related to delayed
delivery of Fusemachine’s Audited Financial Statements were removed and such delay fees incurred were forgiven. As such, the Company
recorded a write off of the receivable and a corresponding reduction to the reserve for credit losses. As such, $505,000 of other receivable
and $505,000 reserve for credit losses was removed from the condensed consolidated balance sheets during the six months ended June 30,
2025.

Related Parties

Parties, which can be a corporation or individual, are considered to
be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the
other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control
or common significant influence.

12

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations
of credit risk consist of a cash account in a financial institution, which, at times, may exceed Federally insured limits. Exposure to
cash and cash equivalents credit risk is reduced by placing such deposits with major financial institutions and monitoring their credit
ratings. At June 30, 2025 and December 31, 2024