Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 24

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 2024 and thereafter $70,000 for each subsequent one-month delay
(pro-rated for any partial month). The Company determined that collection of the other receivable was not probable in June 2024 and established
a reserve for credit losses equal to the other receivable.In connection with the 2nd Amendment, the delay fees clause related to delayed
delivery of Fusemachine’s Audited Financial Statements were removed and such delay fees incurred were forgiven. As such, the Company
recorded a write off of the receivable and a corresponding reduction to the reserve for credit losses. As such, $505,000 of other receivable
and $505,000 reserve for credit losses was removed from the condensed consolidated balance sheets during the six months ended June 30,
2025.

Related Parties

Parties, which can be a corporation or individual, are considered to
be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the
other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control
or common significant influence.

12

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations
of credit risk consist of a cash account in a financial institution, which, at times, may exceed Federally insured limits. Exposure to
cash and cash equivalents credit risk is reduced by placing such deposits with major financial institutions and monitoring their credit
ratings. At June 30, 2025 and December 31, 2024, the Company had not experienced losses on this account and management believes the Company
is not exposed to significant risks on such account.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic
740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose specified additional
information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold.
ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further
disaggregation required for significant individual jurisdictions. ASU 2023-09 will become effective for annual periods beginning after
December 15, 2024. The Company is still reviewing the impact of ASU 2023-09.

The Company has considered all new accounting pronouncements and has