Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 598

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 598
---
 stock options was $715.5 thousand, which is expected to be recognized over a weighted-average period of 2.72 years. The total intrinsic value of options exercised was $10,647.5 thousand and zero during the year ended December 31, 2024 and 2023 respectively. The weighted average grant-date fair value per share of stock options granted during the year ended December 31, 2024 and 2023 was $2.80 and $0.41, respectively. The Company estimated the fair value of stock options using the Black-Scholes Model on the date of grant. The assumptions used in the Black-Scholes Model were as follows:

|                                        |     | December 31, |               |     |      |        |
|                                        |     |         2024 |               |     | 2023 |        |
| Weighted average expected term (years) |     |              |          5.79 |     |      |   4.02 |
| Weighted average expected volatility   |     |              |        66.90% |     |      | 73.28% |
| Risk-free interest rate                |     |              | 4.08% - 4.10% |     |      |  3.99% |
| Dividend yield                         |     |              |            0% |     |      |     0% |

F-86

The Promissory Notes Transaction

Early Exercise of Stock Options

The Company permits certain employees and directors to exercise stock options granted under the 2023 Plan prior to vesting. In February 2023,
the Company’s Chief Executive Officer, Mr. Maskey and other three executives early exercised a total of 2,470,000 stock options prior to vesting (The February Options Awards); however, in lieu of the cash consideration required to exercise
the stock options, these individuals each provided a 3.82% interest bearing non-recourse note (the “2023 Promissory Notes”), for an aggregate principle of $1,136.2 thousand. The notes are
scheduled to mature in February 2030.

The nonrecourse nature of the loan secured by the shares pledged as collateral essentially provides
the employee with rights like that of an option and thus no receivable for amounts due under the 2023 Promissory Notes was recorded on the Company’s consolidated balance sheets. While the shares of common stock purchased by the employees in
exchange