Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 27

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 borrow up to an aggregate principal amount of $300,000.
On January 18, 2022, the Company repaid $206,313 for amounts outstanding under the Promissory Note balance, resulting in an overpayment
of $25,000. The Company also made payments related to Sponsor invoices. These items are recorded within due from related party on the
condensed balance sheet as of June 30, 2025 and December 31, 2024.

In February 2023, the Sponsor issued an unsecured promissory note to
the Company (the “WC Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $1,500,000.
The WC Promissory Note bears interest at a rate of 4.75% per annum and is payable on the earlier of the date by which the Company has
to complete a business combination or the effective date of a business combination. On January 18, 2024, the Company issued an amended
and restated promissory note (the “A&R WC Promissory Note”), pursuant to which the Company may borrow up to an aggregate
principal amount of $2,000,000. The A&R WC Promissory Note does not amend any other existing terms.

14

On February 4, 2025, the Company issued a third amended and restated
promissory note (the “3rd A&R WC Promissory Note”) pursuant to which the Company may borrow up to an aggregate 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 Ex