Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 404

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 404
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 loss on extinguishment of debt.

Loss on extinguishment of debt for quarter ended
March 31, 2024, represents the repayment of the 2023 Notes Agreement. In August 2023, we entered into a loan and security agreement with a lender (the “2023 Notes Agreement”) that will make available to us the loans in an aggregate
principal amount of up to $4.0 million in three separate tranches. In January 2024, we repaid the entire aggregate outstanding principal on the 2023 Notes Payable along with an additional payment for interest, prepayment fees, and lender fees.
These payments resulted in a loss, recorded in loss on extinguishment of debt.

Loss on extinguishment of debt for the quarter ended
March 31, 2025, was $0.4 million as compared to $0.6 million for the quarter ended March 31, 2024. The $0.6 million is the loss on extinguishment of aforementioned 2023 Notes Payable.

Loss on change in fair value – Loss on change in value represents the changes in fair value related to our convertible notes and
warrant liability.

Gain/(Loss) on change in fair value for the quarter ended March 31, 2025 was $1.52 million as compared to
($0.8) million for the quarter ended March 31, 2024, resulting in gain of $2.32 million. We qualified for and elected to account for the convertible notes under the fair value option and, in doing so, bypassed the analysis of
potential embedded derivative features. As a result, the convertible notes were recorded at fair value upon issuance and recorded as gain and loss on change in fair value in the consolidated statements of operations and comprehensive loss, for the
three month ended March 31, 2025, and March 31, 2024, respectively. This variance primarily reflects updated valuations as of March 31, 2025, compared to those as of December 31, 2024, due to a decrease in the company’s
estimated marketable stock price under the deSPAC scenario from $7.48 as of December 31, 2024 to $6.38 as of March 31, 2025, which reduced the fair value of the related instruments. The Company’s management performed a quantitative
assessment of Gain/(Loss) on change in fair value for this period, and in doing so, considered an independent fair valuation report