Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 88

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 for the six months ended June 30, 2025 and 2024, respectively.

11

Income taxes

The Company accounts for income taxes in accordance with the provisions
of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability, method as required by this accounting
standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between
the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to the period when assets are realized or liability is settled. Any effect
on deferred tax assets and liabilities of a change in tax rates is recognized in the operation of statement in the period that includes
the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than
not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with
the laws of the relevant taxing authorities.

ASC 740 prescribes a comprehensive model for how companies should recognize,
measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under
ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained
upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit
that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the
position and relevant facts. There were no unrecognized tax benefits as of June 30, 2025 or December 31, 2024. The Company recognizes
accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of
interest and penalties as of June 30, 2025 or December 31, 2024. The Company is currently not aware of any issues under review that could
result in significant payments, accruals or material deviation from its position.

The Company is considered an exempted Cayman Islands Company and
is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the
Company’s tax provision was zero for the period presented.

Covenant Fees

Pursuant to the Merger Agreement, Fusemachines is coven