Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 150

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 150
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 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.

25

Critical Accounting Estimates

The preparation of financial statements and related disclosures
in conformity with accounting principles generally accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date
of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those
estimates.

We have not identified any critical accounting estimates.

Recent Accounting Pronouncements

Refer to Note 2 - Summary of Significant Accounting Policies in the
Notes to Condensed Consolidated Financial Statements.

Item 3. Quantitative and Qualitative Disclosures About Market
Risk

We are a smaller reporting company as defined by Rule 12b-2 of the
Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures

Disclosure controls and procedures are controls and other procedures
that are designed to ensure that information required