Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 35

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 in the aggregate. The deferred fee is payable to the underwriter from the amounts held
in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting
agreement.

On November 28, 2023, the Company and the underwriter entered into
an agreement under which (i) the Sponsor will transfer 426,000 Class A ordinary shares held by the Sponsor to the underwriter upon the
closing of the Company’s initial business combination and (ii) the underwriter will waive the deferred underwriter fee payable and
any deferred underwriting commissions payable pursuant to the underwriter agreement dated April 22, 2021. For avoidance of doubt, the
agreement applies only if the initial Business Combination is consummated, and the transfer of shares is effective and completed. Except
as specifically amended in the agreement, all terms of the underwriting agreement dated April 22, 2021 shall remain in full force and
effect.

Financial Services Agreement

The Sponsor entered into a financial services agreement (the “Financial
Services Agreement”) with a service provider (the “Broker-Dealer”) for a period of twelve (12) months commencing October
13, 2022, to provide broker-dealer services. In accordance with the Financial Services Agreement, the Broker-Dealer will be paid a fee
in the form of 125,000 shares of common stock in the surviving entity of the proposed business combination with Fusemachines. Compensation
due to the Broker-Dealer is in scope of ASC 718 Compensation — Stock Compensation (“ASC 718”) and SAB Topic 5T. The
consummation of the initial business combination is considered a performance condition under ASC 718 and stock based compensation should
not be recognized until the performance condition is considered probable. As business combinations are not considered probable until consummated,
the Company will not recognize compensation costs related to the Consulting Services Agreements until the consummation of the initial
business combination. The unrecognized stock-based compensation expense related to the Consulting Agreements was $533,750 as of June 30,
2025 and December 31, 2024.

Consulting Agreements

The Sponsor entered into consulting services agreements (the “Consulting
Services Agreements”) with a service provider (the “Consultant”) on April 10, 2023 and September 5, 2023 to provide
consulting, advisory and related services to the Sponsor and to the Company on behalf