Company: CSLMF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076682
Chunk: 149

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 149
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ilium Acquisition Sponsor I, LLC, the Company’s Sponsor, upon the closing of its initial Business Combination.
In the event that such shares are not registered, the underwriter’s deferred fee shall be reinstated.

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 of the Sponsor. In accordance with the Consulting
Services Agreements, the Consultant will purchase and the Sponsor will sell 75,000 shares of its Class B ordinary shares of the Company
at a price of $0.006 per share in return for such services. The Consulting Services Agreements are contingent upon the consummation of
the initial business combination. Compensation due to the Consultant 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