Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 93

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 principal
amount of $3,000,000. The 3rd A&R Promissory Note additionally includes a conversion feature whereby, notwithstanding the foregoing
in the event of the Business Combination, the outstanding balance may be repaid at the Sponsor’s discretion, in cash or $1,491,000
of the principal and accrued and unpaid interest shall be converted into the Company’s Class A ordinary shares at a share price
of four dollars ($4.00), the balance of which shall be payable in cash at the closing of the Business Combination.

The Company determined that the third amendment to the WC
Promissory note is not considered a troubled debt restructuring and that the inclusion of a conversion feature is a substantive
modification. As a result, the issuance of the 3rd A&R WC Promissory Note on February 4, 2025 is accounted for as a debt
extinguishment in accordance with ASC 470-50, “Modification and Extinguishments”. During the three and six months ended
June 30, 2025, the Company recognized a loss on extinguishment of debt of $0 and $1,822,844, respectively, in the condensed
consolidated statement of operations. Additionally, the Company determined that the 3rd A&R WC Promissory Note was issued at a
substantial premium due to the inclusion of the conversion feature in accordance with ASC 470-20, “Debt with Conversion and
Other Options”. During the three and six months ended June 30, 2025, the Company recognized the substantial premium in excess
of the principal and accrued interest of $0 and $1,822,844, respectively, in additional paid-in capital on the condensed
consolidated balance sheets.

On May 23, 2025, the Company amended the 3rd A&R WC Promissory
Note solely to increase the amount the Company may borrow from $3,000,000 to $4,000,000. All other provisions of the 3rd A&R WC Promissory
Note remain the same.

As of June 30, 2025 and December 31, 2024, the Company had borrowed
$3,363,000 and $2,750,000, respectively, and accrued interest of $200,109 and $129,630, respectively.

Related Party Loans

In addition, in order to finance transaction costs in connection with
a Business Combination, the Sponsor, an affiliate of the