Table of Contents
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-Q
 
 
(Mark One)
☒
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
 
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
     
to
     
Commission File Number
001-41219
 
 
CSLM ACQUISITION CORP.
(Exact name of registrant as specified in its charter)
 
 
 
Cayman Islands
  
98-1602789
(State or other jurisdiction of
  
(IRS Employer
incorporation or organization)
  
Identification No.)
2400 E. Commercial Boulevard,
Suite 900
Ft. Lauderdale, Florida 33308
(Address of principal executive offices and zip code)
(954)
315-9381
(Registrant’s telephone number, including area code)
Consilium Acquisition Corp I Ltd.
(Former name, former address and former fiscal year, if changed since last report)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
  
Trading
Symbol(s)
  
Name of each exchange
on which registered
Units, each consisting of one Class A ordinary
share, one right and
one-half
of one redeemable warrant
   CSLMU   The Nasdaq Stock Market LLC
Class A ordinary shares, par value $0.0001 per share   CSLM   The Nasdaq Stock Market LLC
Redeemable warrants, each whole warrant
exercisable for one Class A ordinary share at an exercise price of $11.50		   CSLMW   The Nasdaq Stock Market LLC
Rights to acquire
one-tenth
of one Class A ordinary share		   CSLMR   The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(Section 232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act:
 
Large accelerated filer   ☐    Accelerated filer   ☐
Non-accelerated filer
   ☒    Smaller reporting company   ☒
     Emerging growth company   ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Ex
chan
ge Act). Yes ☒ No ☐
The aggregate market value of the Registrant’s Class A ordinary shares outstanding, other than shares held by persons who may be deemed affiliates of the Registrant, as of N
ovember 
1
5
, 2024 was approximately $15,579,997. As of November
1
8
, 2024, there were 6,116,436 of the R
egistrant’s Class A ordinary shares and 1 of the Registrant’s Class B ordinary shares, par value $0.0001 per share, issued and outstanding.
 
 
 

Table of Contents

CSLM ACQUISITION CORP.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2024

TABLE OF CONTENTS

 

PART I — FINANCIAL INFORMATION

     1  

Item 1.

    Interim Financial Statements      1  
   Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023      1  
   Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (unaudited)      2  
   Condensed Consolidated Statements of Changes in Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit for the three and nine months ended September 30, 2024 and 2023 (unaudited)      3  
   Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited)      4  
   Notes to Condensed Consolidated Financial Statements (Unaudited)      5  

Item 2.

    Management’s Discussion and Analysis of Financial Condition and Results of Operations      20  

Item 3.

    Quantitative and Qualitative Disclosures About Market Risk      24  

Item 4.

    Controls and Procedures      24  

PART II — OTHER INFORMATION

     24  

Item 1.

    Legal Proceedings      24  

Item 1A.

    Risk Factors      25  

Item 2.

    Unregistered Sales of Equity Securities and Use Of Proceeds      25  

Item 3.

    Defaults Upon Senior Securities      26  

Item 4.

    Mine Safety Disclosures      26  

Item 5.

    Other Information      26  

Item 6.

    Exhibits      26  

SIGNATURES

     27  

 

i

Table of Contents
PART I — FINANCIAL INFORMATION
Item 1. Interim Financial Statements
CSLM ACQUISITION CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
    
September 30,

2024

(unaudited)
    
December 31,

2023
  
Assets:
     
Current assets:
     
Cash
    $ 47,353     $ 138,283  
Prepaid expenses
      28,602       15,848  
Due from related party
      31,849       31,849  
Other receivable, net of reserve for credit losses of $225,000
      —        —   
Marketable securities held in Trust Account
      15,779,835       51,976,918  
  
 
 
    
 
 
  
Total Assets
   
$
15,887,639
 
  
$
52,162,898
 
  
 
 
    
 
 
  
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit
     
Current liabilities:
     
Accounts payable
    $ 364,459     $ 132,349  
Accrued expenses
      843,436       471,830  
Promissory note – related party
      2,350,000       1,230,000  
Accrued interest - related party
      97,903       28,288  
Deferred underwriting commissions
      6,641,250       6,641,250  
  
 
 
    
 
 
  
Total Liabilities
      10,297,048       8,503,717  
Commitments and Contingencies (Note 7)
     
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized, 1,372,687 and 4,772,187 shares subject to redemption as of September 30, 2024 and December 31, 2023, respectively
      15,779,835       51,976,918  
Shareholders’ Deficit:
     
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding
      —        —   
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 4,743,749 issued and outstanding, excluding 1,372,687 and 4,772,187 subject to possible redemption as of September 30, 2024 and December 31, 2023, respectively
      474       474  
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 1 share issued and outstanding as of September 30, 2024 and December 31, 2023, respectively
      0       0  
Additional
paid-in
capital
      —        —   
Accumulated deficit
      (10,189,718 )      (8,318,211 ) 
  
 
 
    
 
 
  
Total Shareholders’ Deficit
      (10,189,244 )      (8,317,737 ) 
  
 
 
    
 
 
  
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit
   
$
15,887,639
 
  
$
52,162,898
 
  
 
 
    
 
 
  
The accompanying notes are an integral part of the unaudited condensed consolidated financial
state
ments.
 
1
CSLM ACQUISITION CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
    
For the Three Months Ended

September 30,
    
For the Nine Months Ended

September 30,
  
    
2024
    
2023
    
2024
    
2023
  
Insurance expense
    $ 50,072     $ 120,419     $ 164,185     $ 357,331  
Dues and subscriptions
      73,370       83,504       140,971       224,444  
Administrative expenses – related party
      30,000       —        90,000       —   
Legal and accounting expenses
      432,298       99,540       946,736       426,072  
General and administrative expenses
      —        —        —        1,552  
Interest expense – related party
      27,287       8,901       69,615       15,210  
  
 
 
    
 
 
    
 
 
    
 
 
  
Operating expenses
      613,027       312,364       1,411,507       1,024,609  
  
 
 
    
 
 
    
 
 
    
 
 
  
Loss from operations
   
 
(613,027
)
  
 
(312,364
) 
  
 
(1,411,507
)
  
 
(1,024,609
) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Other income:
         
Realized gain on marketable securities held in Trust Account
      —        —        —        2,538,270  
Dividends on marketable securities held in Trust Account
      480,118       1,170,072       1,849,140       3,055,971  
Covenant fees
      210,000       —        435,000       —   
Provision for credit losses
      (210,000 )      —        (435,000 )      —   
  
 
 
    
 
 
    
 
 
    
 
 
  
Total other income, net
      480,118       1,170,072       1,849,140       5,594,241  
  
 
 
    
 
 
    
 
 
    
 
 
  
Net (loss) income
   
$
(132,909
) 
  
$
857,708
 
  
$
437,633
 
  
$
4,569,632
 
  
 
 
    
 
 
    
 
 
    
 
 
  
Basic and diluted weighted average shares outstanding, Class A ordinary shares subject to possible redemption
      3,220,241       8,786,025       4,251,096       15,541,353  
Basic and diluted net income per share, Class A ordinary shares stock subject to redemption
    $ 0.10     $ 0.12     $ 0.36     $ 0.32  
Basic and diluted weighted average shares outstanding,
non-redeemable
Class A ordinary shares
      4,743,749       4,073,437       4,743,749       1,372,733  
Basic and diluted net loss per share,
non-redeemable
Class A ordinary shares
    $ (0.10 )    $ (0.05 )    $ (0.23 )    $ (0.15 ) 
Basic and diluted weighted average shares outstanding,
non-redeemable
Class B ordinary shares
      1       670,313       1       3,371,017  
Basic and diluted net loss per share,
non-redeemable
Class B ordinary shares
    $ (0.10 )    $ (0.02 )    $ (0.23 )    $ (0.05 ) 
The accompanying notes are an integral part of the unaudited condensed consolidated financial state
m
ents.
 
2
CSLM ACQUISITION CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CLASS A ORDINARY SHARES
SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEFICIT
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024
 
   
Class A

Temporary Equity
    
Class A

Ordinary Shares
    
Class B

Ordinary Shares
    
Additional

Paid-in

Capital
    
Accumulated

Deficit
    
Shareholders’

Deficit
  
   
Shares
    
Amount
    
Shares
    
Amount
    
Shares
    
Amount
  
Balance as of January 1, 2024
  
 
4,772,187
 
  
$
51,976,918
 
  
 
4,743,749
 
  
$
474
 
  
 
1
 
  
$
0
  
  
$
— 
 
  
$
(8,318,211
) 
  
$
(8,317,737
) 
Sponsor waiver of administrative services fees
     —        —        —        —        —        —        30,000       —        30,000  
Remeasurement of Class A ordinary shares subject to redemption
     —        889,342       —        —        —        —        (30,000 )      (859,342 )      (889,342 ) 
Net income
     —        —        —        —        —        —        —        148,092       148,092  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2024 (unaudited)
  
 
4,772,187
 
  
 
52,866,260
 
  
 
4,743,749
 
  
 
474
 
  
 
1
 
  
 
0
 
  
 
— 
 
  
 
(9,029,461
) 
  
 
(9,028,987
) 
Sponsor waiver of administrative services fees
     —        —        —        —        —        —        30,000       —        30,000  
Remeasurement of Class A ordinary shares subject to redemption
     —        899,680       —        —        —        —        (30,000 )      (869,680 )      (899,680 ) 
Net income
     —        —        —        —        —        —        —        422,450       422,450  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of June 30, 2024 (unaudited)
  
 
4,772,187
 
  
 
53,765,940
 
  
 
4,743,749
 
  
$
474
 
  
 
1
 
  
 
0
 
  
$
— 
 
  
 
(9,476,691
) 
  
 
(9,476,217
) 
Sponsor waiver of administrative services fees
     —        —        —        —        —        —        30,000       —        30,000  
Redemption of Class A ordinary shares
      (3,399,500 )       (38,596,223 )      —        —        —        —        —        —        —   
Remeasurement of Class A ordinary shares subject to redemption
     —        610,118       —        —        —        —        (30,000 )      (580,118 )      (610,118 ) 
Net loss
     —        —        —        —        —          —        —        (132,909 )      (132,909 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of September 30, 2024 (unaudited)
  
 
 1,372,687
 
  
$
 15,779,835
 
  
 
4,743,749
 
  
$
474
 
  
 
         1
  
  
$
0
 
  
$
— 
 
  
$
(10,189,718
) 
  
$
(10,189,244
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

 
 
Class A

Temporary Equity
 
 
Class A

Ordinary Shares
 
 
Class B

Ordinary Shares
 
 
Additional

Paid-in

Capital
 
 
Accumulated

Deficit
 
 
Shareholders’

Deficit
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
Balance as of January 1, 2023
  
 
18,975,000
 
  
$
194,767,885
 
  
 
— 
 
  
$
— 
 
  
 
4,743,750
 
  
$
474
 
  
$
— 
  
  
$
 (6,489,773
) 
  
$
 (6,489,299
) 
Remeasurement of Class A
ordinary shares subject to
redemption
     —        2,105,252       —        —        —        —        —        (2,105,252 )      (2,105,252 ) 
Net income
     —        —        —        —        —        —        —        1,618,630       1,618,630  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of March 31, 2023 (unaudited)
  
 
18,975,000
 
  
 
196,873,137
 
  
 
— 
 
  
 
— 
 
  
 
4,743,750
 
  
 
474
 
  
 
— 
 
  
 
(6,976,395
) 
  
 
(6,975,921
) 
Remeasurement of Class A
ordinary shares subject to redemption
     —        2,318,917       —        —        —        —        —        (2,318,917 )      (2,318,917 ) 
Net income
     —        —        —        —        —        —        —        2,093,294       2,093,294  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of June 30, 2023 (unaudited)
  
 
18,975,000
 
  
 
199,192,054
 
  
 
— 
 
  
 
— 
 
  
 
4,743,750
 
  
 
474
 
  
$
— 
 
  
 
(7,202,018
) 
  
 
(7,201,544
) 
Redemption of Class A ordinary shares
     (14,202,813 )      (149,486,187 )      —        —        —        —        —        —        —   
Conversion of Sponsor Class B ordinary shares to Class A ordinary shares
     —        —        4,743,749       474       (4,743,749
)

     (474
)

     —        —        —   
Remeasurement of Class A
ordinary shares subject to redemption
     —        1,380,072       —        —        —        —        —        (1,380,072 )      (1,380,072 ) 
Net income
     —        —        —        —        —        —        —        857,708       857,708  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Balance as of September 30,
2023 (unaudited)
  
 
4,772,187
 
  
$
51,085,939
 
  
 
4,743,749
 
  
$
474
 
  
 
1
 
  
$
0
 
  
$
— 
 
  
$
(7,724,382
) 
  
$
(7,723,908
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The accompanying notes are an integral part of the unaudited condensed consolidated financial stat
em
ents.
 
3
CSLM ACQUISITION CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
    
For the Nine Months Ended

September 30,
  
    
2024
    
2023
  
Cash Flows from Operating Activities:
     
Net income
    $ 437,633     $ 4,569,632  
Adjustments to reconcile net income to net cash provided by operating activities:
     
Realized gain on marketable securities held in Trust Account
      —        (2,538,270 ) 
Accrued dividends on marketable securities held in Trust Account
      165,645       (217,803 ) 
Sponsor waiver of administrative services fees
      90,000       —   
Changes in current assets and current liabilities:
     
Prepaid expense
      (12,754 )      336,910  
Other receivable, net of reserve for credit losses
      —        —   
Accounts payable
      232,110       7,579  
Accrued expenses
      371,606       94,614  
Accrued interest – related party
      69,615       15,210  
Accrued offering costs
      —        (279,678 ) 
  
 
 
    
 
 
  
Net cash provided by operating activities
   
 
1,353,855
 
  
 
1,988,194
 
  
 
 
    
 
 
  
Cash Flows from Investing Activities:
     
Purchase of treasury and other marketable securities
      (2,564,785 )     (395,435,168 ) 
Proceeds from redemption of treasury securities
      38,596,223       541,873,187  
  
 
 
    
 
 
  
Net cash provided by investing activities
   
 
36,031,438
 
  
 
146,438,019
 
  
 
 
    
 
 
  
Cash Flows from Financing Activities:
     
Proceeds from promissory note – related party
      1,120,000       900,000  
Payment of redemptions to Class A ordinary shareholders
      (38,596,223 )      (149,486,187 ) 
  
 
 
    
 
 
  
Net cash used in financing activities
   
 
(37,476,223
) 
  
 
(148,586,187
) 
  
 
 
    
 
 
  
Net Change in Cash
      (90,930 )      (159,974 ) 
Cash – Beginning of the period
      138,283       224,474  
  
 
 
    
 
 
  
Cash – End of the period
   
$
47,353
 
  
$
64,500
 
  
 
 
    
 
 
  
Supplemental Disclosure of
Non-cash
Financing Activities:
     
Remeasurement of Class A ordinary shares subject to possible redemption
    $ 2,399,140     $ 5,804,241  
Deferred offering costs included in accrued offering costs
    $ —      $ (279,678 ) 
Reserve for credit losses
    $ 435,000     $ —   
The accompanying notes are an integral part of the unaudited condensed consolidated financial sta
teme
nts.
 
4
CSLM ACQUISITION CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
NOTE 1 — ORGANIZATION AND BUSINESS BACKGROUND
Organization and General
CSLM ACQUISITION CORP. (the “Company”) is a blank check company incorporated in the Cayman Islands as an exempted company on April 13, 2021. The Company was incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). We intend to effectuate our initial Business Combination using cash from the proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, our capital stock, debt or a combination of cash, stock and debt. The Company’s unaudited condensed financial statements include CSLM Merger Sub, Inc., a wholly-owned subsidiary of CSLM Acquisition Corp. and are presented on a consolidated basis (the “Financial Statements”).
The Company is not limited to a particular industry or geographic location for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, 2024, the Company had not commenced any operations. All activity from April 13, 2021 (inception) through September 30, 2024 relates to the Company’s formation, the initial public offering (“Initial Public Offering” or “IPO”), which is described below, and pursuit of a business combination. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate
non-operating
income in the form of investment income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.
On July 13, 2023, the Company submitted a certificate of incorporation of name change to the Cayman Islands Registry of Companies to change our name from “Consilium Acquisition Corp I, LTD.” to “CSLM Acquisition Corp.”. The name change of the Company to CSLM Acquisition Corp. was effected on Nasdaq at the open of trading on July 18, 2023 and continued trading under the same ticker symbol “CSLM”. The name change does not affect the rights of the Company’s securities holders.
Financing
On January 18, 2022, the Company consummated its Initial Public Offering of 18,975,000 units (the “Units”), including the issuance of 2,475,000 Units as a result of the underwriter’s exercise of its over-allotment option. Each Unit consists of one Class A ordinary share of the Company, par value $0.0001 per share (an “Ordinary Share”), one right to acquire
one-tenth
of an Ordinary Share, and
one-half
of one redeemable warrant of the Company. Each whole warrant entitles the holder thereof to purchase one Ordinary Share for $11.50 per share, subject to adjustment. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to the Company of $189,750,000.
Substantially concurrently with the closing of the Initial Public Offering, the Company completed the private sale of 7,942,500 private placement warrants (the “Private Placement Warrants”) at a purchase price of $1.00 per Private Placement Warrant, to the Company’s sponsor, Consilium Acquisition Sponsor I, LLC (the “Sponsor”), generating gross proceeds to the Company of $7,942,500. The Private Placement Warrants are identical to the warrants sold as part of the Units in the Initial Public Offering except that, so long as they are held by the Sponsor or its permitted transferees: (1) they will not be redeemable by the Company (except in certain redemption scenarios when the price per Ordinary Share equals or exceeds $10.00 (as adjusted)); (2) they (including the Ordinary Shares issuable upon exercise of these warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold by the Sponsor until 30 days after the completion of the Company’s initial business combination; (3) they may be exercised by the holders on a cashless basis; and (4) they (including the Ordinary Shares issuable upon exercise of these warrants) are entitled to registration rights.
A total of $2,250,000 was deposited to the Company’s operating account and a total of $191,647,500, comprised of a portion of proceeds from the IPO and the sale of the Private Placement Warrants, was placed in a U.S.-based trust account at JP Morgan Chase Bank, N.A., maintained by Continental Stock Transfer & Trust Company, acting as trustee (the “Trust Account”). Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the funds held in the Trust Account will not be released from the Trust Account until the earliest to occur of: (1) the Company’s completion of an initial business combination; (2) the redemption of any public shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with its initial business combination or to redeem 100% of the Company’s public shares if the Company does not complete its initial business combination by October 18, 2024 after depositing $70,000 into the Trust Account for each one month Extension or (B) with respect to any other provision relating to shareholders’ rights or
pre-initial
business combination activity; and (3) the redemption of the Company’s public shares if the Company has not completed its initial business combination by October 18, 2024, subject to applicable law.
 
5
On July 13, 2023 as approved by its shareholders at an extraordinary general meeting held on July 13, 2023 (the “Special Meeting”), The Company, and its trustee, Continental Stock Transfer & Trust Company amended (the “Amendment”) the Investment Management Trust Agreement, dated as of January 12, 2022 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”) and the Company, in order to allow the Company to extend the time to complete a business combination by fifteen (15) additional one (1) month periods until, October 18, 2024 (the “Termination Date” or the “Combination Period”). The Company is required to deposit $70,000 into the Trust Account for each of the fifteen (15) additional one (1) month extension periods. At the Special Meeting, the shareholders of the Company approved a special resolution to the Articles of Association to extend the time to consummate a business combination until October 18, 2024 and the Amendment in accordance with the Company’s Amended and Restated Memorandum of Association and Articles of Association (the “Articles of Association”).
In connection with the shareholders’ vote at the Special Meeting, 14,202,813 Class A shares were tendered for redemption. Shareholders validly redeemed their shares for $149,486,187, or approximately $10.53 per class A share. The trustee processed the redemptions on July 11, 2023 and distributed amounts from the Trust Account to the redeeming shareholders on July 26, 2023.
Immediately after the Special Meeting, the Company extended the time to complete the business combination by one (1) month to August 18, 2023, and deposited the sum of $70,000 into the Trust Account in accordance with the terms of the Trust Agreement. As of September 30, 2024, the Company has exercised thirteen (13) of the fifteen (15) additional one (1) month extension periods, depositing an aggregate of $910,000 into the Trust Account, to extend the time to complete the business combination to August 18, 2024.
On August 18, 2024, as approved by its shareholders at the annual general meeting held on August 18, 2024 (the “Annual Meeting”), the Company and its trustee, Continental Stock Transfer & Trust Company, amended the Investment Management Trust Agreement dated January 12, 2022, as amended on July 13, 2023, in order to allow the Company to extend the time to complete a business combination on a
month-to-month
basis, until July 18, 2025 (the “Extended Termination Date” or the “Extended Combination Period”) by placing $30,000 into the Company’s Trust Account. As of September 30, 2024, the Company has made two (2) deposits of $30,000, or $60,000 in the aggregate, to extend the time with which the Company has to complete a business combination to October 18, 2024. On October 15, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to November 18, 2024, and on November 14, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to December 18, 2024 (see Note
9).
Merger Agreement
On January 22, 2024, the Company entered into a Merger Agreement, by and among the Company, CSLM Merger Sub Inc. (“Merger Sub”), and Fusemachines Inc., a Delaware corporation (“Fusemachines”) (as it may be amended and/or restated from time to time, the “Merger Agreement”). The Merger Agreement provides that, among other things and upon the terms and subject to the conditions thereof, Merger Sub will merge with and into Fusemachines, after which Fusemachines will be the surviving corporation and a wholly owned subsidiary of the Company.
On August 27, 2024, the Company entered into an amendment to the Merger Agreement (the “Merger Agreement Amendment”) whereby the Company will continue out of the Cayman Islands and into the State of Delaware to
re-domicile
and become a newly formed Delaware corporation by means of a merger with the Company, pursuant to the Cayman Islands Companies law and the applicable provisions of the Delaware General Corporation Law, with such newly formed Delaware corporation becoming the surviving corporation in the merger. In addition the Merger Agreement Amendment includes a provision that increases the amount the Company may borrow from the Sponsor
from $2,000,000 to $2,750,000.
Risks and Uncertainties
Results of operations and the Company’s ability to complete an Initial Business Combination may be adversely affected by various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond its control. The business could be impacted by, among other things, downturns in the financial markets or in economic conditions, inflation, increases in interest rates, adverse developments af
fec
ting the financial services industry, and geopolitical instability, such as the military conflict in the Ukraine and the middle e
a
st.
 
6
Any of the foregoing consequences, including those we cannot yet predict, may cause our business, financial condition, results of operations and the price of our ordinary shares to be adversely affected. The Financial Statements do not include any adjustments that might result from the outcome of this uncertainty.
Going Concern Consideration
As of September 30, 2024 and December 31, 2023, the Company had $47,353 and $138,283 in cash, respectively, and a working capital deficit of $3,547,994 and $1,676,487, respectively, excluding
Marketable
Securities held in the Trust Account and the Deferred Underwriter
Commissions
 
liability.
The Company’s liquidity needs through September 30, 2024 had been satisfied through a payment from the Sponsor of $25,000 for Class B ordinary shares, par value $0.0001 per share (“Class B ordinary shares” and shares thereof, “founder shares”), the Initial Public Offering and the sale of the private placement warrants (see Note 3 and Note 4). Additionally, the Company drew on an unsecured promissory note to pay certain offering costs and an unsecured promissory note bearing interest at 4.75% per annum for working capital needs.
The Company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period within one year after the date that the Financial Statements are issued. Management plans to address this uncertainty through related party loans from the Sponsor, an affiliate of the Sponsor, or certain of the Company’s officers and directors or their affiliates (“Working Capital Loans”) (see Note 5) and effecting a Business Combination. However, there is no assurance that the Company’s plans to raise capital or to consummate a Business Combination will be successful or successful within the Extended Combination Period.
The Financial Statements do not include any adjustments that might result from the outcome of this uncertainty.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form
10-Q
and Article 8 of Regulation
S-X
of the Securities and Exchange Commission (the “SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying Financial Statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair statement of the financial position, operating results and cash flows for the periods presented.
The accompanying Financial Statements should be read in conjunction with the Company’s Annual Report on Form
10-K
for the year ended December 31, 2023 as filed with the SEC on April 1, 2024, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2023 is derived from the audited financial statements presented in the Company’s Annual Report on Form
10-K
for the year ended December 31, 2023. The interim results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future interim periods
Emerging Growth Company
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies.
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging
growth companies but any such election to opt out is irrevocable. The Company has
 
7
elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may ma
ke com
parison of the Company’s financial statements with another public company, which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those esti
mat
es.
Cash and Cash Equivalents
The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
Marketable Securities Held in Trust Account
Following the closing of the Initial Public Offering on January 18, 2022, an amount of $191,647,500 from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants were placed in the Trust Account and may be invested only in U.S. government securities with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule
2a-7
under the Investment Company Act which invest only in direct U.S. government treasury obligations. The Trust Account is intended as a holding place for funds pending the earliest to occur of: (i) the completion of the initial Business Combination; (ii) the redemption of any public shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to redeem 100% of the public shares if the Company does not complete the initial Business Combination within 12 months from the closing of the Initial Public Offering or (B) with respect to any other provision relating to shareholders’ rights or
pre-initial
Business Combination activity; or (iii) absent an initial Business Combination within 12 months from the closing of the Initial Public Offering, the return of the funds held in the Trust Account to the public shareholders as part of redemption of the public shares.
Net Income (Loss) Per Ordinary Share
The statements of operations include a presentation of income (loss) per Class A redeemable ordinary shares and income (loss) per
non-redeemable
Class A and Class B ordinary shares following the
two-class
method of income per common stock. In order to determine the net income (loss) attributable to both the Class A redeemable ordinary shares and
non-redeemable
Class A and Class B ordinary shares, the Company first considered the total income (loss) allocable to both sets of stock. This is calculated using the total net income (loss) less any dividends paid. For purposes of calculating net income (loss) per share, any remeasurement of the Class A ordinary shares subject to possible redemption was treated as dividends paid to the public shareholders. Subsequent to calculating the total income (loss) allocable to both sets of shares, the Company split the amount to be allocated using the total number of shares outstanding for each share class at each respective period, before and after redemptions and conversions, for the three and six months ended September 30, 2024 and 2023, reflective of the respective participation rights.
 
8
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2024 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2024
  
Net loss
    $ (132,909 ) 
Remeasurement of temporary equity to redemption value
      (610,118 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to red
e
mption value
   
$
(743,027
) 
  
 
 
  
 
9
    
For the Three Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      1,372,687        4,743,749        1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (278,639 )     $ (464,388 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      610,118        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
331,479
 
   
$
(464,388
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      3,220,241        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.10      $ (0.10 )     $ (0.10 ) 
 
    
For the

Nine Months

Ended

September 30, 2024
  
Net income
    $ 437,633  
Remeasurement of temporary equity to redemption value
      (2,399,140 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,961,507
) 
  
 
 
  
 
    
For the Nine Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
   
 
1,372,687
 
   
 
4,743,749
 
   
 
1
 
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (889,701 )    $ (1,071,806 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      2,399,140        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,509,439
 
   
$
(1,071,806
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      4,251,096        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.36      $ (0.23 )     $ (0.23 ) 
 
10
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2023 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2023
  
Net income
    $ 857,708  
Remeasurement of temporary equity to redemption value
      (1,380,072 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(522,364
) 
  
 
 
  
 
    
For the Three Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (306,030 )     $ (201,572 )     $ (14,762 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      1,380,072        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,074,042
 
   
$
(201,572
) 
   
$
(14,762
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      8,786,025        4,073,437        670,313  
Basic and diluted net income (loss) per share
    $ 0.12      $ (0.05 )     $ (0.02 ) 
 
    
For the

Nine Months

Ended

September 30, 2023
  
Net income
    $ 4,569,632  
Remeasurement of temporary equity to redemption value
      (5,804,241 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,234,609
) 
  
 
 
  
 
11
    
For the Nine Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (875,826 )     $ (201,572 )     $ (157,211 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      5,804,241        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
4,928,415
 
   
$
(201,572
) 
   
$
(157,211
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      15,541,353        1,372,733         3,371,017  
Basic and diluted net income (loss) per share
    $ 0.32      $ (0.15 )     $ (0.05 ) 
Fair value of Financial Instruments
ASC Topic 820, Fair Value Measurement, defines fair value as the amount that would be received to sell an asset or paid to transfer a li
abil
ity, in an orderly transaction between market participants.
Fair value measurements are classified on a three-tier hierarchy as follows:
 
  •  
Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
 
  •  
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
 
  •  
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as calculations derived from valuation techniques in which one or more significant inputs or significant value drivers are observable.
In many cases, if a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy described above, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.
The fair value of the Company’s assets and liabilities, which qualify as financial instruments approximates the carrying amounts represented in the balance sheet, primarily due to its short-term nature.
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then
re-valued
at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or
non-current
based on whether or not
net-cash
settlement or conversion of the instrument could be required within 12 months of the balance sheet date.
 
12
Warrants and Rights
The Company accounts for the public and private warrants and rights as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance in FASB ASC Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Pursuant to the Company’s evaluation, the Company concluded that the public and private warrants and rights do not meet the criteria to be accounted for as liability under ASC 480. The Company further evaluated the public and private warrants and rights under “ASC
815-40,
Derivatives and Hedging — Contracts in Entity’s Own Equity” (“ASC
815-40”)
and concluded that the public warrants, private placement warrants and rights are indexed to the Company’s own stock and meet the criteria to be classified in shareholders’ deficit.
Ordinary Shares Subject to Possible Redemption
Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. In connection with the shareholders’ vote at the Special meeting of shareholders held by the Company on June 29, 2023, 14,202,813 Class A ordinary shares were tendered for redemption for an aggregate value of $149,486,187 and distributed from the Trust Account on July 26, 2023. In connection with the shareholders’ vote at the Annual Meeting of the shareholders held by the Company on August 18, 2024, 3,399,500 Class A ordinary shares were tendered for redemption at an aggregate value of $38,596,223 and distributed from the Trust Account on August 21, 2024. Accordingly, at September 30, 2024, 1,372,687 shares of Class A ordinary shares subject to possible redemption is presented, at redemption value equal to the amount held in the Trust Account, as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.
The proceeds of the offering were allocated to the Class A ordinary shares and the Public Warrants and Rights based on their relative fair values. The Company recognizes changes in redemption value of Class A ordinary shares subject to possible redemption immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Such changes are reflected in additional
paid-in
capital, or in the absence of additional capital, in accumulated deficit. The Company has recorded remeasurements of $610,118 and $1,380,072
 
for the three months ended September 30, 2024 and 2023, respectively, and $2,399,140 and $5,804,241 for the nine months ended September 30, 2024 and 2023, respectively.
Income taxes
The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability, method as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liability is settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the operation of statement in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. There were no unrecognized tax benefits as of September 30, 2024 or December 31, 2023. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September 30, 2024 or December 31, 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.
The Company is considered an exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented.
 
13
Covenant Fees
Pursuant to the Merger Agreement, Fusemachines is covenanted to deliver to the Company its audited financial statements for the twelve
mo
nth periods ended December 31, 2023 and 2022 (the “Fusemachines Audited Financial Statements”) for inclusion in the registration statement on Form
S-4
to be filed by the Company in connection with the Business Combination (the “Registration Statement”), and that such Fusemachines Audited Financial Statements have been prepared in conformity with U.S. GAAP applied on a consistent basis and in accordance with the requirements of the Public Company Accounting Oversight Board for public companies. Fusemachines has covenanted to provide the Fusemachines Audited Financial Statements no later than February 29, 2024, or incur delay fees in the amount equal to $35,000 for the first
one-month
delay to March 31, 2024
(pro-rated
for a partial month), $50,000 for the second
one-month
delay to April 30, 2024 and thereafter $70,000 for each subsequent
one-month
delay
(pro-rated
for any partial month). Fusemachines provided the Fusemachines Audited Financial Statements to the Company in September 2024. As such, the Company has recorded $210,000 and $435,000 of covenant fees as other income on the condensed consolidated statements of operations for the three and nine months ended September 30, 2024, respectively, and as an other receivable on the condensed consolidated balance sheets as of September 30, 2024. Collection of the covenant fees is not probable as of September 30, 2024. As such, the Company established a reserve for credit losses against the other receivable. The Company has recorded $210,000 and $435,000 to credit losses as other expense on the condensed consolidated statements of operations for the three and nine months ended September 30, 2024, respectively.
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.
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 September 30, 2024 and December 31, 2023, 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 concluded that there are no additional new pronouncements that may have a material impact on the results of operations, financial condition, or cash flows, based on the current information.
NOTE 3 — INITIAL PUBLIC OFFERING
Pursuant to the Initial Public Offering, the Company sold 18,975,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of Class A ordinary shares, one right and
one-half
of one warrant (“Public Warrant”). Each whole Public Warrant is anticipated to entitle the holder to purchase one share of Class A ordinary shares at a price of $11.50 per share, subject to adjustment (see Note 6).
An aggregate of $10.10 per Unit sold in the Initial Public Offering was held in the Trust Account and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule
2a-7
of the Investment Company Act, as determined by the Company.
 
14
NOTE 4 — PRIVATE PLACEMENT
The Company entered into an agreement with the Sponsor pursuant to which the Sponsor purchased an aggregate of 7,942,500 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, generating proceeds of $7,942,500 in the aggregate in a private placement that occurred substantially concurrently with the closing of the Initial Public Offering. Each Private Placement Warrant is exercisable to purchase one share of ordinary shares at an exercise price of $11.50 per share, subject to adjustment (see Note 6). A portion of the proceeds from the Private Placement Warrants will be added to the proceeds from the Initial Public Offering to be held in the Trust Account. If the Company does not complete a Business Combination within the Extended Combination Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law), and the Private Placement Warrants will expire worthless.
NOTE 5 — RELATED PARTY TRANSACTIONS
Founder Shares
In July 2021, the Sponsor purchased 4,743,750 shares of the Company’s Class B ordinary shares (the “Founder Shares”) for an aggregate purchase price of $25,000. The Founder Shares included an aggregate of up to 618,750 shares subject to forfeiture by the Sponsor to the extent that the underwriter’s overallotment was not exercised in full or in part, so that the number of Founder Shares collectively represented approximately 20% of the Company’s issued and outstanding shares after the Initial Public Offering. In August 2021, the Sponsor transferred 50,000 founder shares to each of the Company’s independent director nominees. The Company will account for the transfer of founder shares under ASC
718-10-15-4
and record a compensation expense upon completion of a Business Combination.
The Sponsor has agreed, subject to certain limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier of (A) one year after the completion of a Business Combination or (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share capitalization, share subdivisions, reorganizations, recapitalizations and the like) for any 20 trading days within any
30-trading
day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the Company’s shareholders having the right to exchange their Class A ordinary shares for cash, securities or other property.
Administrative Services Agreement
The Company entered into a support services agreement, commencing on the effective date of the initial public offering, pursuant to which the Company will pay the Sponsor a total of $10,000 per month for office space, administrative and support services. The Sponsor has waived all payments under the support services agreement. The Company has recorded the waived payments as capital contributions from the Sponsor and has recorded $30,000 and $0 to the consolidated statements of operations for the three months ended September 30, 2024 and 2023, respectively, and $90,000 and $0 to the consolidated statements of operations for the nine months ended September 30, 2024 and 2023, respectively.
Promissory Note — Related Party
In July 2021, the Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company may 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 September 30, 2024 and December 31, 2023.
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. On August 19, 2024, the Company issued a second amended and restated promissory note (the “2
nd
A&R WC Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $2,750,000. The 2
nd
A&R WC Promissory Note does not amend any other existing terms.
The Company drew an aggregate of $2,350,000 and has accrued $97,903 of interest on principal amounts outstanding as of September 30, 2024 and drew an aggregate of $1,230,000 and has accrued $28,288 of interest on principal amounts outstanding as of December 31, 2023.
 
15
Related Party Loans
In addition, in order to finance transaction costs in connection with a Business Co
mbin
ation, the Sponsor, an affiliate of the Sponsor, or certain of the Company’s officers and directors or their affiliates may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $2,000,000 of such Working Capital Loans may be convertible into warrants, at a price of $1.00 per warrant, of the post Business Combination entity. If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The warrants would be identical to the Private Placement Warrants. As of September 30, 2024 and December 31, 2023, no Working Capital Loans were outstanding.
NOTE 6 — SHAREHOLDERS’ DEFICIT
Preference Shares — The Company is authorized to issue 5,000,000 shares of preference shares with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s board of directors. At September 30, 2024 and December 31, 2023, there were no shares of preference shares issued or outstanding.
Class A Ordinary shares — The Company is authorized to issue 500,000,000 Class A ordinary shares with a par value of $0.0001 per share. Holders of Class A ordinary shares are entitled to one vote for each share. In connection with the shareholders’ vote at the Special Meeting of shareholders held by the Company on June 29, 2023, 14,202,813 redeemable Class A ordinary shares were tendered for redemption for an aggregate value of $149,486,187 and distributed from the Trust Account on July 26, 2023. On July 13, 2023, the Company issued 4,743,749 shares of its
non-redeemable
Class A ordinary shares to the Sponsor upon the conversion of an equal number of Class B ordinary shares. The
non-redeemable
Class A ordinary shares are the same as the Class B ordinary shares in that they do not have redemption rights and are not entitled to proceeds from liquidation from the Trust Account if the Company does not consummate a business combination. However, unlike the Class B ordinary shares, the
non-redeemable
Class A ordinary shares do not have voting rights to appoint or remove directors of the Company. In connection with the shareholders’ vote at the Annual Meeting of shareholders held by the Company on August 18, 2024, 3,399,500 redeemable Class A ordinary shares were tendered for redemption for an aggregate value of $38,596,223 and distributed from the Trust Account on August 21, 2024. At September 30, 2024 and December 31, 2023, there were 4,743,749
non-redeemable
Class A ordinary shares issued or outstanding, excluding 1,372,687 and 4,772,187 redeemable Class A ordinary shares issued and outstanding subject to possible redemption, at redemption value, respectively.
Class B Ordinary shares — The Company is authorized to issue 50,000,000 shares of Class B ordinary shares with a par value of $0.0001 per share. On July 13, 2023, the Company issued 4,743,749 shares of its
non-redeemable
Class A ordinary shares to the Sponsor upon the conversion of an equal number of Class B ordinary shares. At September 30, 2024 and December 31, 2023, there was one (
1
) shares of Class B ordinary shares issued and outstanding.
With respect to any other matter submitted to a vote of our shareholders, including any vote in connection with our initial business combination, except as required by law, holders of our Founder Shares and holders of our public shares will vote together as a single class, with each share entitling the holder to one vote. However, prior to the consummation of the Business Combination, holders of the Class B ordinary shares will have the right to elect all of the Company’s directors and may remove members of the board of directors for any reason.
The shares of Class B ordinary shares will automatically convert into Class A ordinary shares at the time of a Business Combination on a
one-for-one
basis, subject to adjustment. In the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B ordinary shares shall convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding shares of Class B ordinary shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all shares of Class B ordinary shares will equal, in the aggregate, on an
as-converted
basis, 20% of the sum of the total number of all shares of ordinary shares outstanding upon the completion of the Initial Public Offering plus all Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination and excluding any private placement warrants issued to our sponsor, its affiliates or any member of our management team upon conversion of working capital loans.
 
16
Rights — Except in cases where the Company is not the surviving company in a Business Combination, each holder of a right will automatically receive
one-tenth
(1/10) of one Class A ordinary share upon consummation of a Business Combination, even if the holder of a right converted all shares held by him, her or it in connection with a Business Combination or an amendment to the Company’s Amended and Restated Certificate of Incorporation with respect to its
pre-business
combination activities. In the event that the Company will not be the surviving company upon completion of a Business Combination, each holder of a right will be required to affirmatively convert his, her or its rights in order to receive the
one-tenth
(1/10) of a share underlying each right upon consummation of the Business Combination.
The Company will not issue fractional shares in connection with an exchange of rights. Fractional shares will either be rounded down to the nearest whole share or otherwise addressed in accordance with the applicable provisions of the Cayman Islands law. As a result, the holders of the rights must hold rights in multiples of 10 in order to receive shares for all of the holders’ rights upon closing of a Business Combination. If the Company is unable to complete an initial Business Combination within the Extended Combination Period and the Company redeems the Public Shares for the funds held in the Trust Account, holders of rights will not receive any of such funds for their rights and the rights will expire worthless.
Warrants — Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. Accordingly, unless a unit holder purchases at least two units, they will not be able to receive or trade a whole warrant. The Public Warrants will become exercisable on the later of (a) 12 months from the closing of the Initial Public Offering and (b) 30 days after the completion of a Business Combination.
The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act with respect to the Class A ordinary shares underlying the Public Warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No Public Warrant will be exercisable, and the Company will not be obligated to issue any Class A ordinary shares upon exercise of a Public Warrant unless the share of Class A ordinary shares issuable upon such Public Warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the Public Warrants.
The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A ordinary shares issuable upon exercise of the public warrants, and the Company will use its commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of a Business Combination, and to maintain the effectiveness of such registration statement and a current prospectus relating to those Class A ordinary shares until the public warrants expire or are redeemed, as specified in the public warrant agreement; provided that if the Class A ordinary shares is at the time of any exercise of a public warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants who exercise their public warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but it will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. If a registration statement covering the Class A ordinary shares issuable upon exercise of the public warrants is not effective by the 60th business day after the closing of a Business Combination, public warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise public warrants on a “cashless basis” in accordance with Section 3(a) (9) of the Securities Act or another exemption, but the Company will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.
Redemption of warrants when the price per Class A ordinary shares equals or exceeds $18.00. Once the public warrants become exercisable, the Company may redeem the Public Warrants:
 
  •  
in whole and not in part;
 
  •  
at a price of $0.01 per warrant;
 
  •  
upon not less than 30 days’ prior written notice of redemption to each warrant holder; and
 
  •  
if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a
30-trading
day period ending three trading days before the Company sends the notice of redemption to the warrant holders. If and when the Public Warrants become redeemable by the Company, it may exercise its redemption right even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws.
 
17
In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in con
nec
tion with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A ordinary shares (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.
The Private Placement Warrants are identical to the Public Warrants included in the Units being sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A ordinary shares issuable upon the exercise of the Private Placement Warrants are not transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are
non-redeemable
by the Company.
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Registration and Shareholder Rights
The holders of the Founder Shares, Private Placement Warrants, and warrants that may be issued upon conversion of Working Capital Loans (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the Initial Public Offering, requiring the Company to register such securities for resale. The holders will have the right to require us to register for resale these securities pursuant to a shelf registration under Rule 415 under the Securities Act. The holders of a majority of these securities will also be entitled to make up to three demands, plus short form registration demands, that we register such securities. In addition, the holders will be entitled to certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The Company granted the underwriter a
45-day
option from the date of the Initial Public Offering to purchase up to 2,475,000 additional Units to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discount. The underwriters exercised the over-allotment option in full on January 18, 2022, the date of the Initial Public Offering. The underwriter was entitled to a cash underwriting discount of $0.20 per Unit, or $3,795,000 in the aggregate, which was paid upon the closing of the Initial Public Offering. In addition, the underwriter is entitled to a deferred fee of $0.35 per Unit, or $6,641,250 in the aggregate. The deferred fee is payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.
On November 28, 2023, the Company and the underwriter entered into an agreement under which (i) the Sponsor will transfer 426,000 Class A ordinary shares held by the Sponsor to the underwriter upon the closing of the Company’s initial business combination and (ii) the underwriter will waive the deferred underwriter fee payable and any deferred underwriting commissions payable pursuant to the underwriter agreement dated April 22, 2021. For avoidance of doubt, the agreement applies only if the initial Business Combination is consummated, and the transfer of shares is effective and completed. Except as specifically amended in the agreement, all terms of the underwriting agreement dated April 22, 2021 shall remain in full force and effect.
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 Services Agreements until the consummation of the initial business combination.
 
18
Capital Markets Advisory Agreement
The Company entered into a capital markets advisory agreement (the “Advisory Agreement”) with a service provider (the “Advisor”) on June 21, 2024 to provide capital markets advisory services to the Company. In accordance with the Advisory Agreement, the Advisor will be paid an advisory fee comprised of $100,000 in cash and 75,000 common shares of the post initial business combination entity (the “Advisory Fee”). The Advisory agreement is contingent upon consummation of the initial business combination. The cash compensation due to the Advisor is in scope of ASC 450 Contingencies (“ASC 450”) and the share based compensation due to the Advisor is in scope of ASC 718. The consummation of the initial business combination is considered a loss contingency under ASC 450 and is considered a performance condition under ASC 718 and the Advisory Fee should not be recognized until considered probable. As business combinations are not considered probable until consummated, the Company will not recognize compensation costs related to the Advisory Fee until the consummation of the initial business combination.
NOTE 8 — FAIR VALUE MEASUREMENTS
At September 30, 2024 and December 31, 2023, the Company’s marketable securities held in the Trust Account were valued at $15,779,835 and $51,976,918, respectively. The marketable securities held in the Trust Account must be recorded on the balance sheet at fair value and are subject to
re-measurement
at each balance sheet date. With each
re-
measurement, the valuations will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations.
The following table presents the fair value information, as of September 30, 2024 and December 31, 2023, of the Company’s financial assets that were accounted for at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. The Company’s marketable securities held in the Trust Account are based on dividend and interest income and market fluctuations in the value of invested marketable securities, which are considered observable. The fair value of the marketable securities held in trust is classified within Level 1 of the fair value hierarchy.
The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value on a recurring basis:
 
    
(Level 1)
     
(Level 2)
     
(Level 3)
  
As of September 30, 2024
         
Assets:
         
Treasury Trust Funds held in Trust Account
    $ 15,779,835      $ —       $ —   
As of December 31, 2023
         
Assets:
         
Treasury Trust Funds held in Trust Account
    $ 51,976,918      $ —       $ —   
NOTE 9 — SUBSEQUENT EVENT
S
On October 2, 2024, the Company drew an additional $
200,000
on the 2nd A&R WC Promissory Note.
On October 15, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to November 18, 2024.
On November 13, 2024, the Company drew an additional $200,000 on the 2nd A&R WC Promissory Note.
On November 14, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to December 18, 2024.
 
 
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

References to the “Company,” “CSLM Acquisition Corp.,” “Consilium Acquisitions Corp. I,” “our,” “us” or “we” refer to CSLM Acquisition Corp. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Special Note Regarding Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s final prospectus for its Initial Public Offering filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview

CSLM Acquisition Corp. (the “Company”) is a blank check company incorporated in the Cayman Islands as an exempted company on April 13, 2021. The Company was incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”). We intend to effectuate our initial Business Combination using cash from the proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, our capital stock, debt or a combination of cash, stock and debt.

The Company is not limited to a particular industry or geographic location for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

As of September 30, 2024, the Company had not commenced any operations. All activity from April 13, 2021 (inception) through September 30, 2024 relates to the Company’s formation, the initial public offering (“Initial Public Offering”), which is described below, and pursuit of a business combination. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.

On July 13, 2023, the Company submitted a certificate of incorporation of name change to the Cayman Islands Registry of Companies to change our name from “Consilium Acquisition Corp I, LTD.” to “CSLM Acquisition Corp.”. The name change of the Company to CSLM Acquisition Corp. was effected on Nasdaq at the open of trading on July 18, 2023 and continued trading under the same ticker symbol “CSLM”. The name change does not affect the rights of the Company’s securities holders.

On January 18, 2022, the Company consummated its Initial Public Offering of 18,975,000 units (the “Units”), including the issuance of 2,475,000 Units as a result of the underwriter’s exercise of its over-allotment option. Each Unit consists of one Class A ordinary share of the Company, par value $0.0001 per share (an “Ordinary Share”), one right to acquire one-tenth of an Ordinary Share, and one-half of one redeemable warrant of the Company. Each whole warrant entitles the holder thereof to purchase one Ordinary Share for $11.50 per share, subject to adjustment. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to the Company of $189,750,000.

 

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Substantially concurrently with the closing of the Initial Public Offering, the Company completed the private sale of 7,942,500 private placement warrants (the “Private Placement Warrants”) at a purchase price of $1.00 per Private Placement Warrant, to the Company’s sponsor, Consilium Acquisition Sponsor I, LLC (the “Sponsor”), generating gross proceeds to the Company of $7,942,500. The Private Placement Warrants are identical to the warrants sold as part of the Units in the Initial Public Offering except that, so long as they are held by the Sponsor or its permitted transferees: (1) they will not be redeemable by the Company (except in certain redemption scenarios when the price per Ordinary Share equals or exceeds $10.00 (as adjusted)); (2) they (including the Ordinary Shares issuable upon exercise of these warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold by the Sponsor until 30 days after the completion of the Company’s initial business combination; (3) they may be exercised by the holders on a cashless basis; and (4) they (including the Ordinary Shares issuable upon exercise of these warrants) are entitled to registration rights.

A total of $2,250,000 was deposited to the Company’s operating account and a total of $191,647,500, comprised of a portion of proceeds from the IPO and the sale of the Private Placement Warrants, was placed in a U.S.-based trust account at JP Morgan Chase Bank, N.A., maintained by Continental Stock Transfer & Trust Company, acting as trustee (the “Trust Account”). Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the funds held in the Trust Account will not be released from the Trust Account until the earliest to occur of: (1) the Company’s completion of an initial business combination; (2) the redemption of any public shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with its initial business combination or to redeem 100% of the Company’s public shares if the Company does not complete its initial business combination by October 18, 2024 after depositing $70,000 into the Trust Account for each one-month Extension or (B) with respect to any other provision relating to shareholders’ rights or pre-initial business combination activity; and (3) the redemption of the Company’s public shares if the Company has not completed its initial business combination by October 18, 2024, subject to applicable law.

On July 13, 2023 as approved by its shareholders at an extraordinary general meeting held on July 13, 2023 (the “Special Meeting”), The Company, and its trustee, Continental Stock Transfer & Trust Company amended (the “Amendment”) the Investment Management Trust Agreement, dated as of January 12, 2022 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”) and the Company, in order to allow the Company to extend the time to complete a business combination by fifteen (15) additional one (1) month periods until, October 18, 2024 (the “Termination Date” or the “Combination Period”). The Company is required to deposit $70,000 into the Trust Account for each one-month Extension.

In connection with the shareholders’ vote at the Special Meeting, 14,202,813 Class A shares were tendered for redemption. Shareholders validly redeemed their shares for $149,486,187, or approximately $10.53 per class A share. The trustee processed the redemptions on July 11, 2023 and distributed amounts from the Trust Account to the redeeming shareholders on July 26, 2023.

Immediately after the Special Meeting, the Company extended the time to complete the business combination by one (1) month to August 18, 2023, and deposited the sum of $70,000 into the Trust Account in accordance with the terms of the Trust Agreement. As of September 30, 2024, the Company has exercised thirteen (13) of the fifteen (15) additional one (1) month extension periods, depositing an aggregate of $910,000 into the Trust Account, to extend the time to complete the business combination to August 18, 2024.

On August 18, 2024, as approved by its shareholders at the annual general meeting held on August 18, 2024 (the “Annual Meeting”), the Company and its trustee, Continental Stock Transfer & Trust Company, amended the Investment Management Trust Agreement dated January 12, 2022, as amended on July 13, 2023, in order to allow the Company to extend the time to complete a business combination on a month-to-month basis, until July 18, 2025 (the “Extended Termination Date” or the “Extended Combination Period”) by placing $30,000 into the Company’s Trust Account. As of September 30, 2024, the Company has made two (2) deposits of $30,000 to extend the time with which the Company has to complete a business combination to October 18, 2024. On October 15, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to November 18, 2024, and on November 14, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to December 18, 2024.

Merger Agreement

On January 22, 2024, the Company entered into a Merger Agreement, by and among the Company, CSLM Merger Sub Inc. (“Merger Sub”), and Fusemachines Inc., a Delaware corporation (“Fusemachines”) (as it may be amended and/or restated from time to time, the “Merger Agreement”). The Merger Agreement provides that, among other things and upon the terms and subject to the conditions thereof, Merger Sub will merge with and into Fusemachines, after which Fusemachines will be the surviving corporation and a wholly owned subsidiary of the Company.

On August 27, 2024, the Company entered into an amendment to the Merger Agreement (the “Merger Agreement Amendment”) whereby the Company will continue out of the Cayman Islands and into the State of Delaware so that as to re-domicile and become a Delaware corporation of means of a merger of the Company with and into a newly formed Delaware corporation pursuant to the Cayman Islands Companies law and the applicable provisions of the Delaware General Corporation Law with such newly formed Delaware corporation becoming the surviving corporation in the merger. In addition the Merger Agreement Amendment includes a provision that increases the amount the Company may borrow from the Sponsor from $2,000,000 to $2,750,000.

 

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Results of Operations

Our entire activity from inception through September 30, 2024 relates to our formation, the Initial Public Offering and, since the closing of the Initial Public Offering, a search for a Business Combination candidate. We will not be generating any operating revenues until the closing and completion of our Business Combination at the earliest.

For the three months ended September 30, 2024, we had a net loss of $132,909, which consisted of $480,117 dividends on marketable securities held in the Trust Account and $210,000 of covenant fees, offset by $210,000 of expected credit losses, $432,297 of legal and accounting expenses, $50,072 of insurance expense, $73,370 of dues and subscriptions expense, $30,000 of administrative expense – related party, and $27,287 of interest expense.

For the nine months ended September 30, 2024, we had a net income of $437,633, which consisted of $1,849,139 dividends on marketable securities held in the Trust Account and $435,000 of covenant fees, offset by $435,000 of expected credit losses, $946,735 of legal and accounting expenses, $164,185 of insurance expense, $140,971 of dues and subscriptions expense, $90,000 of administrative expense – related party, and $69,615 of interest expense.

For the three months ended September 30, 2023, we had a net income of $857,708, which consisted of $1,170,072 realized gain and dividends on marketable securities held in the Trust Account, offset by $99,540 of legal and accounting expenses, $120,419 of insurance expense, $83,504 of dues and subscriptions expense, and $8,901 of interest expense.

For the nine months ended September 30, 2023, we had a net income of $4,569,632, which consisted of $5,594,241 realized gain and dividends on marketable securities held in the Trust Account, offset by $426,071 of legal and accounting expenses, $357,331 of insurance expense, $224,444 of dues and subscriptions expense, 15,210 of interest expense, and $1,552 of bank fees, general and administrative expenses.

Liquidity and Capital Resources

As of September 30, 2024 and December 31, 2023, the Company had $47,353 and $138,283 in cash, respectively, and a working capital deficit of $3,547,994 and $1,676,487, respectively, excluding Marketable Securities held in the Trust Account and the Deferred Underwriter Commissions liability.

The Company’s liquidity needs through September 30, 2024 had been satisfied through a payment from the Sponsor of $25,000 for Class B ordinary shares, par value $0.0001 per share (“Class B ordinary shares” and shares thereof, “founder shares”), the Initial Public Offering and the sale of the private placement warrants. Additionally, the Company drew on an unsecured promissory note to pay certain offering costs and an unsecured promissory note bearing interest at 4.75% per annum to pay for working capital needs.

 

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The Company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period within one year after the date that the financial statements are issued. Management plans to address this uncertainty through related party loans from the Sponsor, an affiliate of the Sponsor, or certain of the Company’s officers and directors or their affiliates (“Working Capital Loans”) and effecting a Business Combination. However, there is no assurance that the Company’s plans to raise capital or to consummate a Business Combination will be successful or successful within the Extended Combination Period. In addition, management is currently evaluating the impact of various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond its control. The business could be impacted by, among other things, downturns in the financial markets or in economic conditions, inflation, increases in interest rates, adverse developments affecting the financial services industry, and geopolitical instability, such as the military conflict in the Ukraine.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern one year from the date these financial statements are issued. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Contractual Obligations

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities as of September 30, 2024.

The underwriter of the IPO is entitled to a deferred discount of $0.35 per Unit, or $6,641,250 in the aggregate. The deferred discount will become payable to the underwriter from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the terms of the underwriting agreement.

On November 28, 2023, the Company and the underwriter entered into an agreement under which (i) the Sponsor will transfer 426,000 Class A ordinary shares held by the Sponsor to the underwriter upon the closing of the Company’s initial business combination and (ii) the underwriter will waive the deferred underwriter fee payable and any deferred underwriting commissions payable pursuant to the underwriter agreement dated April 22, 2021. For avoidance of doubt, the agreement applies only if the initial Business Combination is consummated, and the transfer of shares is effective and completed. Except as specifically amended in the agreement, all terms of the underwriting agreement dated April 22, 2021 shall remain in full force and effect.

Commitments and Contingencies

Registration and Shareholder Rights

The holders of the Founder Shares, Private Placement Warrants, and warrants that may be issued upon conversion of Working Capital Loans (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the Initial Public Offering, requiring the Company to register such securities for resale. The holders will have the right to require us to register for resale these securities pursuant to a shelf registration under Rule 415 under the Securities Act. The holders of a majority of these securities will also be entitled to make up to three demands, plus short form registration demands, that we register such securities. In addition, the holders will be entitled to certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The Company granted the underwriter a 45-day option from the date of the Initial Public Offering to purchase up to 2,475,000 additional Units to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discount. The underwriters exercised the over-allotment option in full on January 18, 2022, the date of the Initial Public Offering. The underwriter was entitled to a cash underwriting discount of $0.20 per Unit, or $3,795,000 in the aggregate, which was paid upon the closing of the Initial Public Offering. In addition, the underwriter is entitled to a deferred fee of $0.35 per Unit, or $6,641,250 in the aggregate. The deferred fee is payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. On November 28, 2023, the Company and BTIG entered into an agreement under which BTIG waived its entitlement to the payment of the deferred compensation and instead receive 426,000 Class A ordinary shares from shares held by the Sponsor only in the event of the closing of a Business Combination. Accordingly, BTIG will not receive any portion of the $6,641,250 deferred underwriting fee in the event of the closing of a Business Combination. Pursuant to the Waiver, BTIG resigned from every capacity, role or involvement in which BTIG may otherwise be described in any registration statement as acting or agreeing to act in the future with respect to any business combination of CSLM and/or its Sponsor. The Company has agreed to register shares received by BTIG from Consilium 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.

 

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Founder Transaction Bonus Agreement

The founder and Chief Executive Officer of Fusemachines (the “Executive”) is eligible to receive a transaction bonus in cash equal to the lesser of (i) 20% of each dollar of Parent closing cash in excess of $1,000,000, and (ii) $1,000,000 at the time of the closing of the business combination (the “Closing”). The Founder Transaction Bonus Agreement is subject to (i) the Executive actively supporting and working towards the completion of all of the requirements necessary to consummate the transactions contemplated by the Merger Agreement, as reasonably determined by the Company and Parent, prior to the Closing, (ii) the Executive continuing to be employed in good standing by the Company from the date hereof through the Closing, and (iii) the Closing of the Merger. If all of the foregoing conditions are satisfied, the Founder Transaction Bonus Agreement amount shall be paid to the Executive concurrently with the Closing.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have not identified any critical accounting estimates.

Recent Accounting Pronouncements

Refer to Note 2 - Summary of Significant Accounting Policies in the Notes to Condensed Consolidated Financial Statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2024. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were effective.

Changes in Internal Control Over Financial Reporting

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us or any of our officers or directors in their corporate capacity.

 

24

Table of Contents

Item 1A. Risk Factors

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in the Company’s annual report on Form 10-K as filed with the SEC on April 1, 2024. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

Nasdaq Rule 5815 was amended effective October 7, 2024 to provide for the immediate suspension and delisting for failure to meet the 36-month requirement in Nasdaq Rule IM 5101-2(b) to complete a business combination, and our securities will face an immediate suspension and delisting action once we receive a delisting determination letter from Nasdaq after the 36-month window ends on January 12, 2025

Nasdaq Listing Rule IM-5101-2(b) (the “Rule”), requires that we complete a business combination no later than 36 months after our IPO, and Nasdaq Rule 5815 was amended effective October 7, 2024 to provide for the immediate suspension and delisting for failure to meet the 36-month requirement to complete a business combination in the Rule, and our securities will face an immediate suspension and delisting action once we receive a delisting determination letter from Nasdaq after the 36-month window ends on January 12, 2025. Therefore, if we do not complete our business combination by January 12, 2025, which we will not be able to do, our securities will be suspended and delisted from Nasdaq. In addition, while we may appeal the suspension and delisting, a Nasdaq hearings panel will have no discretion in allowing us to remain listed and may only reverse the Nasdaq’s staff’s determination if it finds it made a factual error applying the Rule, which there will not be assuming that we receive a delisting letter on or after January 12, 2025.

If we extend the time to complete a business combination after January 12, 2025, which is beyond the time-frame permitted by the Rule, we will not be listed at the time we close a business combination. If we are not able to meet Nasdaq initial listing requirement in connection with the closing of the Business Combination, Fusemachines may elect to terminate the Business Combination Agreement and not proceed with the business combination.

Once our securities are delisted, our securities would likely trade on the Over the Counter market, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions. If this were to occur, we would face significant material adverse consequences, including.

 

  •  

a determination that our Public Shares are a “penny stock,” which will require brokers trading in the Public Shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for its securities;

 

  •  

limited availability of market quotations for the Company’s securities;

 

  •  

reduced liquidity for the Company’s securities;

 

  •  

a decreased ability to issue additional securities or obtain additional financing in the future.

Because we would no longer be listed on Nasdaq, our securities would no longer be considered to be “covered securities” under the National Securities Markets Improvement Act of 1996, and we would be subject to regulation in each state in which we offer our securities, including in connection with our initial business combination, which may make more difficult and costly to complete a business combination. In addition, our securityholders could be prohibited from trading in our securities absent our registration in the state where such securityholder lives. To date we have not registered our securities in any State, and do not currently plan to do so. This may make it difficult or impossible for our securityholders to trade in our securities.

Item 2. Unregistered Sales of Equity Securities and Use Of Proceeds

Unregistered Sales

Prior to our initial public offering, our sponsor, paid an aggregate of $25,000 to cover certain expenses on behalf of us in exchange for 4,743,750 founder shares, resulting in an effective purchase price paid for the founder shares of approximately $0.006 per share. The number of founder shares issued was determined based on the expectation that the founder shares would represent 20% of the issued and outstanding ordinary shares upon completion of this offering.

Our sponsor purchased 7,942,500 private placement warrants, each exercisable to purchase one Class A ordinary share at $11.50 per share, at a price of $1.00 per warrant ($7,942,500 in the aggregate), in a private placement that closed substantially concurrently with the closing of our initial public offering.

These issuances were made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. No underwriting discounts or commissions were paid with respect to such sales.

Use of Proceeds

On January 18, 2022, the Company consummated its initial public offering of 18,975,000 units at $10.00 per unit, generating gross proceeds of $189,750,000. BTIG, LLC and I-Bankers Securities, Inc. acted as the book-running managers of the offering and BTIG, LLC acted as the representative of the underwriters. The securities sold in the initial public offering were registered under the Securities Act on a registration statement on Form S-1 (No. 333-261570). The SEC declared the registration statements effective on January 12, 2022.

In connection with the initial public offering, we incurred offering costs of approximately $11,236,250 (including deferred underwriting commissions of approximately $6,641,250). Other incurred offering costs consisted principally of preparation fees related to the initial public offering. After deducting the underwriting discounts and commissions (excluding the deferred portion, which amount will be payable upon consummation of the initial business combination, if consummated) and the initial public offering expenses, $191,647,500 million of the net proceeds from our initial public offering and certain of the proceeds from the private placement of the private placement warrants (or $10.00 per unit sold in the initial public offering) was placed in the Trust Account. The net proceeds of the initial public offering and certain proceeds from the sale of the private placement warrants are held in the Trust Account and invested as described elsewhere in this Quarterly Report on Form 10-Q.

On July 13, 2023 as approved by its shareholders at an extraordinary general meeting held on June 29, 2023 (the “Special Meeting”), CSLM and its trustee, Continental Stock Transfer & Trust Company amended (the “Amendment”) the Investment Management Trust Agreement, dated as of January 12, 2022 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”) and the Company, in order to allow the Company to extend the time to complete a business combination by fifteen (15) additional one (1) month periods until, October 18, 2024 (the “Termination Date”) by depositing into the Trust Account $70,000 for each one-month extension (each an “Extension”).

At the Special Meeting, the shareholders of the Company approved a special resolution to the Articles of Association to extend the time to consummate a business combination until October 18, 2024 and the Amendment in accordance with the Company’s Amended and Restated Memorandum of Association and Articles of Association (the “Articles of Association”).

In connection with the shareholders’ vote at the Special Meeting, 14,202,813 Class A shares were tendered for redemption.

On July 13, 2023, as was approved by the shareholders at the Special Meeting, the Company submitted a certificate of incorporation of name change to the Cayman Islands Registry of Companies to change our name from “Consilium Acquisition Corp I, LTD.” to “CSLM Acquisition Corp.” The name change of the Company to CSLM Acquisition Corp. was effected on Nasdaq at the open of trading on July 18, 2023 and continued trading under the same ticker symbol “CSLM”.

 

25

Table of Contents
On August 18, 2024, as approved by its shareholders at the annual general meeting held on August 18, 2024 (the “Annual Meeting”), the Company and its trustee, Continental Stock Transfer & Trust Company, amended the Investment Management Trust Agreement dated January 12, 2022, as amended on July 13, 2023, in order to allow the Company to extend the time to complete a business combination on a
month-to-month
basis, until July 18, 2025, by placing $30,000 into the Company’s Trust Account. In connection with the shareholders’ vote at the Annual Meeting of shareholders held by the Company on August 18, 2024, 3,399,500 Class A Shares were tendered for redemption. As of September 30, 2024, the Company has made two (2) deposits of $30,000 to extend the time with which the Company has to complete a business combination to October 18, 2024. On October 15, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to November 18, 2024.
There has been no other material change in the planned use of the proceeds from the Initial Public Offering and Private Placement as is described in the Company’s final prospectus related to the Initial Public Offering. For a description of the use of the proceeds generated from the Initial Public Offering, see “Item 1. Business.”
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form
10-Q.
 
Exhibit No.
   
Description
31.1*    Certification Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
32.1**    Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*    Inline XBRL Instance Document
101.CAL*    Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.SCH*    Inline XBRL Taxonomy Extension Schema Document
101.DEF*    Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*    Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*    Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*    Cover Page Interactive Data File (Embedded as Inline XBRL document and contained in Exhibit 101).
 
*
Filed herewith.
**
Furnished.
 
26

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    CSLM Acquisition Corp.
Date: November 18, 2024     By:  

/s/ Charles Cassel

      Charles Cassel
      Chief Executive Officer and Chief Financial Officer

 

27

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Charles Cassel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CSLM Acquisition Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 18, 2024      
    By:  

/s/ Charles Cassel

      Charles Cassel
      Chief Executive Officer and Chief Financial Officer (Principal Executive Officer and Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CSLM ACQUISITION CORP. (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2024, as filed with the Securities and Exchange Commission (the “Report”), I, Charles Cassel, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

Date: November 18, 2024

 

By:  

/s/ Charles Cassel

  Charles Cassel
  Chief Executive Officer and Chief Financial Officer (Principal Executive Officer and Principal Financial and Accounting Officer)
v3.24.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2024
Nov. 18, 2024
Nov. 15, 2024
Document Information [Line Items]      
Document Type 10-Q    
Amendment Flag false    
Document Period End Date Sep. 30, 2024    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus Q3    
Document Quarterly Report true    
Document Transition Report false    
Entity Registrant Name CSLM ACQUISITION CORP.    
Entity Central Index Key 0001875493    
Entity File Number 001-41219    
Current Fiscal Year End Date --12-31    
Entity Tax Identification Number 98-1602789    
Entity Incorporation, State or Country Code E9    
Entity Current Reporting Status Yes    
Entity Shell Company true    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
Entity Address, Address Line One 2400 E. Commercial Boulevard    
Entity Address, Address Line Two Suite 900    
Entity Address, City or Town Ft. Lauderdale    
Entity Address, State or Province FL    
Entity Address, Postal Zip Code 33308    
City Area Code 954    
Local Phone Number 315-9381    
Entity Information, Former Legal or Registered Name Consilium Acquisition Corp I Ltd.    
Title of 12(b) Security Class A ordinary shares, par value $0.0001 per share    
Trading Symbol CSLM    
Security Exchange Name NASDAQ    
Entity Interactive Data Current Yes    
Capital Units [Member]      
Document Information [Line Items]      
Title of 12(b) Security Units, each consisting of one Class A ordinary share, one right and one-half of one redeemable warrant    
Trading Symbol CSLMU    
Security Exchange Name NASDAQ    
Warrant [Member]      
Document Information [Line Items]      
Title of 12(b) Security Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50    
Trading Symbol CSLMW    
Security Exchange Name NASDAQ    
Rights [Member]      
Document Information [Line Items]      
Title of 12(b) Security Rights to acquire one-tenth of one Class A ordinary share    
Trading Symbol CSLMR    
Security Exchange Name NASDAQ    
Class A Ordinary Shares [Member]      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding     15,579,997
Common Class A [Member]      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   6,116,436  
Common Class B [Member]      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   1  
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Current assets:    
Cash $ 47,353 $ 138,283
Prepaid expenses 28,602 15,848
Due from related party 31,849 31,849
Other receivable, net of reserve for credit losses of $225,000 0 0
Marketable securities held in Trust Account 15,779,835 51,976,918
Total Assets 15,887,639 52,162,898
Current liabilities:    
Accounts payable 364,459 132,349
Accrued expenses 843,436 471,830
Promissory note – related party 2,350,000 1,230,000
Accrued interest - related party 97,903 28,288
Deferred underwriting commissions 6,641,250 6,641,250
Total Liabilities 10,297,048 8,503,717
Commitments and Contingencies (Note 7)
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized, 1,372,687 and 4,772,187 shares subject to redemption as of September 30, 2024 and December 31, 2023, respectively 15,779,835 51,976,918
Shareholders' Deficit:    
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding 0 0
Additional paid-in capital 0 0
Accumulated deficit (10,189,718) (8,318,211)
Total Shareholders' Deficit (10,189,244) (8,317,737)
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Deficit 15,887,639 52,162,898
Common Class A [Member]    
Shareholders' Deficit:    
Ordinary shares 474 474
Common Class B [Member]    
Shareholders' Deficit:    
Ordinary shares $ 0 $ 0
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 5,000,000 5,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Allowance For Credit Loss On Covenant Fees Receivable Current $ 225,000  
Subject to Possible Redemption Class A Ordinary Shares [Member]    
Temporary Equity, Shares Issued 1,372,687 4,772,187
Temporary equity, shares outstanding 1,372,687 4,772,187
Common Class A [Member]    
Temporary Equity, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Temporary Equity, Shares Authorized 500,000,000 500,000,000
Temporary Equity, Shares Issued 1,372,687 4,772,187
Temporary equity, shares outstanding 1,372,687 4,772,187
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 500,000,000 500,000,000
Common Stock, Shares, Issued 4,743,749 4,743,749
Common Stock, Shares, Outstanding 4,743,749 4,743,749
Common Class B [Member]    
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 50,000,000 50,000,000
Common Stock, Shares, Issued 1 1
Common Stock, Shares, Outstanding 1 1
v3.24.3
Condensed Consolidated Statements of Operations - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Insurance expense $ 50,072 $ 120,419 $ 164,185 $ 357,331
Dues and subscriptions 73,370 83,504 140,971 224,444
Administrative expenses – related party 30,000 0 90,000 0
Legal and accounting expenses 432,298 99,540 946,736 426,072
General and administrative expenses 0 0 0 1,552
Interest expense – related party 27,287 8,901 69,615 15,210
Operating expenses 613,027 312,364 1,411,507 1,024,609
Loss from operations (613,027) (312,364) (1,411,507) (1,024,609)
Other income:        
Realized gain on marketable securities held in Trust Account 0 0 0 2,538,270
Dividends on marketable securities held in Trust Account 480,118 1,170,072 1,849,140 3,055,971
Covenant fees 210,000 0 435,000 0
Provision for credit losses (210,000) 0 (435,000) 0
Total other income, net 480,118 1,170,072 1,849,140 5,594,241
Net (loss) income $ (132,909) $ 857,708 $ 437,633 $ 4,569,632
Redeemable Class A [Member]        
Other income:        
Basic weighted average shares outstanding 3,220,241 8,786,025 4,251,096 15,541,353
Diluted weighted average shares outstanding 3,220,241 8,786,025 4,251,096 15,541,353
Basic net income $ 0.1 $ 0.12 $ 0.36 $ 0.32
Diluted net income $ 0.1 $ 0.12 $ 0.36 $ 0.32
Class A Non Redeemable [Member]        
Other income:        
Basic weighted average shares outstanding 4,743,749 4,073,437 4,743,749 1,372,733
Diluted weighted average shares outstanding 4,743,749 4,073,437 4,743,749 1,372,733
Basic net income $ (0.1) $ (0.05) $ (0.23) $ (0.15)
Diluted net income $ (0.1) $ (0.05) $ (0.23) $ (0.15)
Class B Non Redeemable [Member]        
Other income:        
Basic weighted average shares outstanding 1 670,313 1 3,371,017
Diluted weighted average shares outstanding 1 670,313 1 3,371,017
Basic net income $ (0.1) $ (0.02) $ (0.23) $ (0.05)
Diluted net income $ (0.1) $ (0.02) $ (0.23) $ (0.05)
v3.24.3
Condensed Consolidated Statements of Changes in Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Deficit - USD ($)
Total
Common Stock [Member]
Additional paid-in capital [Member]
Accumulated deficit [Member]
Common Class A [Member]
Common Stock [Member]
Common Class A [Member]
Common Stock [Member]
Common Stock Subject to Mandatory Redemption [Member]
Common Class B [Member]
Common Stock [Member]
Balance Beginning, Shares at Dec. 31, 2022         0 18,975,000 4,743,750
Balance Beginning at Dec. 31, 2022 $ (6,489,299)   $ 0 $ (6,489,773) $ 0 $ 194,767,885 $ 474
Remeasurement of Class A ordinary shares subject to redemption (2,105,252)     (2,105,252)   $ 2,105,252  
Net income (loss) 1,618,630     1,618,630      
Balance Ending, Shares at Mar. 31, 2023         0 18,975,000 4,743,750
Balance Ending at Mar. 31, 2023 (6,975,921)   0 (6,976,395) $ 0 $ 196,873,137 $ 474
Balance Beginning, Shares at Dec. 31, 2022         0 18,975,000 4,743,750
Balance Beginning at Dec. 31, 2022 (6,489,299)   0 (6,489,773) $ 0 $ 194,767,885 $ 474
Sponsor waiver of administrative services fees 0            
Net income (loss) 4,569,632            
Balance Ending, Shares at Sep. 30, 2023         4,743,749 4,772,187 1
Balance Ending at Sep. 30, 2023 (7,723,908)   0 (7,724,382) $ 474 $ 51,085,939 $ 0
Balance Beginning, Shares at Mar. 31, 2023         0 18,975,000 4,743,750
Balance Beginning at Mar. 31, 2023 (6,975,921)   0 (6,976,395) $ 0 $ 196,873,137 $ 474
Remeasurement of Class A ordinary shares subject to redemption (2,318,917)     (2,318,917)   $ 2,318,917  
Net income (loss) 2,093,294     2,093,294      
Balance Ending, Shares at Jun. 30, 2023         0 18,975,000 4,743,750
Balance Ending at Jun. 30, 2023 (7,201,544)   0 (7,202,018) $ 0 $ 199,192,054 $ 474
Redemption of Class A ordinary shares           (14,202,813)  
Redemption of Class A ordinary value           $ (149,486,187)  
Conversion of Sponsor Class B ordinary shares to Class A ordinary shares         4,743,749   (4,743,749)
Conversion of Sponsor Class B ordinary shares to Class A ordinary value         $ 474   $ (474)
Sponsor waiver of administrative services fees 0            
Remeasurement of Class A ordinary shares subject to redemption (1,380,072)     (1,380,072)   $ 1,380,072  
Net income (loss) 857,708     857,708      
Balance Ending, Shares at Sep. 30, 2023         4,743,749 4,772,187 1
Balance Ending at Sep. 30, 2023 (7,723,908)   0 (7,724,382) $ 474 $ 51,085,939 $ 0
Balance Beginning, Shares at Dec. 31, 2023         4,743,749 4,772,187 1
Balance Beginning at Dec. 31, 2023 (8,317,737)   0 (8,318,211) $ 474 $ 51,976,918 $ 0
Sponsor waiver of administrative services fees 30,000   30,000        
Remeasurement of Class A ordinary shares subject to redemption (889,342)   (30,000) (859,342)   $ 889,342  
Net income (loss) 148,092     148,092      
Balance Ending, Shares at Mar. 31, 2024         4,743,749 4,772,187 1
Balance Ending at Mar. 31, 2024 (9,028,987)   0 (9,029,461) $ 474 $ 52,866,260 $ 0
Balance Beginning, Shares at Dec. 31, 2023         4,743,749 4,772,187 1
Balance Beginning at Dec. 31, 2023 (8,317,737)   0 (8,318,211) $ 474 $ 51,976,918 $ 0
Sponsor waiver of administrative services fees 90,000            
Net income (loss) 437,633            
Balance Ending, Shares at Sep. 30, 2024   1     4,743,749 1,372,687  
Balance Ending at Sep. 30, 2024 (10,189,244) $ 0 0 (10,189,718) $ 474 $ 15,779,835  
Balance Beginning, Shares at Mar. 31, 2024         4,743,749 4,772,187 1
Balance Beginning at Mar. 31, 2024 (9,028,987)   0 (9,029,461) $ 474 $ 52,866,260 $ 0
Sponsor waiver of administrative services fees 30,000   30,000        
Remeasurement of Class A ordinary shares subject to redemption (899,680)   (30,000) (869,680)   $ 899,680  
Net income (loss) 422,450     422,450      
Balance Ending, Shares at Jun. 30, 2024         4,743,749 4,772,187 1
Balance Ending at Jun. 30, 2024 (9,476,217)   0 (9,476,691) $ 474 $ 53,765,940 $ 0
Redemption of Class A ordinary shares           (3,399,500)  
Redemption of Class A ordinary value           $ (38,596,223)  
Sponsor waiver of administrative services fees 30,000   30,000        
Remeasurement of Class A ordinary shares subject to redemption (610,118)   (30,000) (580,118)   $ 610,118  
Net income (loss) (132,909)     (132,909)      
Balance Ending, Shares at Sep. 30, 2024   1     4,743,749 1,372,687  
Balance Ending at Sep. 30, 2024 $ (10,189,244) $ 0 $ 0 $ (10,189,718) $ 474 $ 15,779,835  
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash Flows from Operating Activities:    
Net income $ 437,633 $ 4,569,632
Adjustments to reconcile net income to net cash provided by operating activities:    
Realized gain on marketable securities held in Trust Account 0 (2,538,270)
Accrued dividends on marketable securities held in Trust Account 165,645 (217,803)
Sponsor waiver of administrative services fees 90,000 0
Changes in current assets and current liabilities:    
Prepaid expense (12,754) 336,910
Other receivable, net of reserve for credit losses 0 0
Accounts payable 232,110 7,579
Accrued expenses 371,606 94,614
Accrued interest – related party 69,615 15,210
Accrued offering costs 0 (279,678)
Net cash provided by operating activities 1,353,855 1,988,194
Cash Flows from Investing Activities:    
Purchase of treasury and other marketable securities (2,564,785) (395,435,168)
Proceeds from redemption of treasury securities 38,596,223 541,873,187
Net cash provided by investing activities 36,031,438 146,438,019
Cash Flows from Financing Activities:    
Proceeds from promissory note – related party 1,120,000 900,000
Payment of redemptions to Class A ordinary shareholders (38,596,223) (149,486,187)
Net cash used in financing activities (37,476,223) (148,586,187)
Net Change in Cash (90,930) (159,974)
Cash – Beginning of the period 138,283 224,474
Cash – End of the period 47,353 64,500
Supplemental Disclosure of Non-cash Financing Activities:    
Remeasurement of Class A ordinary shares subject to possible redemption 2,399,140 5,804,241
Deferred offering costs included in accrued offering costs 0 (279,678)
Reserve for credit losses $ 435,000 $ 0
v3.24.3
Pay vs Performance Disclosure - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure                
Net Income (Loss) $ (132,909) $ 422,450 $ 148,092 $ 857,708 $ 2,093,294 $ 1,618,630 $ 437,633 $ 4,569,632
v3.24.3
Insider Trading Arrangements
 9 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Organization and Business Background
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Background
NOTE 1 — ORGANIZATION AND BUSINESS BACKGROUND
Organization and General
CSLM ACQUISITION CORP. (the “Company”) is a blank check company incorporated in the Cayman Islands as an exempted company on April 13, 2021. The Company was incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). We intend to effectuate our initial Business Combination using cash from the proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, our capital stock, debt or a combination of cash, stock and debt. The Company’s unaudited condensed financial statements include CSLM Merger Sub, Inc., a wholly-owned subsidiary of CSLM Acquisition Corp. and are presented on a consolidated basis (the “Financial Statements”).
The Company is not limited to a particular industry or geographic location for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, 2024, the Company had not commenced any operations. All activity from April 13, 2021 (inception) through September 30, 2024 relates to the Company’s formation, the initial public offering (“Initial Public Offering” or “IPO”), which is described below, and pursuit of a business combination. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate
non-operating
income in the form of investment income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.
On July 13, 2023, the Company submitted a certificate of incorporation of name change to the Cayman Islands Registry of Companies to change our name from “Consilium Acquisition Corp I, LTD.” to “CSLM Acquisition Corp.”. The name change of the Company to CSLM Acquisition Corp. was effected on Nasdaq at the open of trading on July 18, 2023 and continued trading under the same ticker symbol “CSLM”. The name change does not affect the rights of the Company’s securities holders.
Financing
On January 18, 2022, the Company consummated its Initial Public Offering of 18,975,000 units (the “Units”), including the issuance of 2,475,000 Units as a result of the underwriter’s exercise of its over-allotment option. Each Unit consists of one Class A ordinary share of the Company, par value $0.0001 per share (an “Ordinary Share”), one right to acquire
one-tenth
of an Ordinary Share, and
one-half
of one redeemable warrant of the Company. Each whole warrant entitles the holder thereof to purchase one Ordinary Share for $11.50 per share, subject to adjustment. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to the Company of $189,750,000.
Substantially concurrently with the closing of the Initial Public Offering, the Company completed the private sale of 7,942,500 private placement warrants (the “Private Placement Warrants”) at a purchase price of $1.00 per Private Placement Warrant, to the Company’s sponsor, Consilium Acquisition Sponsor I, LLC (the “Sponsor”), generating gross proceeds to the Company of $7,942,500. The Private Placement Warrants are identical to the warrants sold as part of the Units in the Initial Public Offering except that, so long as they are held by the Sponsor or its permitted transferees: (1) they will not be redeemable by the Company (except in certain redemption scenarios when the price per Ordinary Share equals or exceeds $10.00 (as adjusted)); (2) they (including the Ordinary Shares issuable upon exercise of these warrants) may not, subject to certain limited exceptions, be transferred, assigned or sold by the Sponsor until 30 days after the completion of the Company’s initial business combination; (3) they may be exercised by the holders on a cashless basis; and (4) they (including the Ordinary Shares issuable upon exercise of these warrants) are entitled to registration rights.
A total of $2,250,000 was deposited to the Company’s operating account and a total of $191,647,500, comprised of a portion of proceeds from the IPO and the sale of the Private Placement Warrants, was placed in a U.S.-based trust account at JP Morgan Chase Bank, N.A., maintained by Continental Stock Transfer & Trust Company, acting as trustee (the “Trust Account”). Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the funds held in the Trust Account will not be released from the Trust Account until the earliest to occur of: (1) the Company’s completion of an initial business combination; (2) the redemption of any public shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with its initial business combination or to redeem 100% of the Company’s public shares if the Company does not complete its initial business combination by October 18, 2024 after depositing $70,000 into the Trust Account for each one month Extension or (B) with respect to any other provision relating to shareholders’ rights or
pre-initial
business combination activity; and (3) the redemption of the Company’s public shares if the Company has not completed its initial business combination by October 18, 2024, subject to applicable law.
 
On July 13, 2023 as approved by its shareholders at an extraordinary general meeting held on July 13, 2023 (the “Special Meeting”), The Company, and its trustee, Continental Stock Transfer & Trust Company amended (the “Amendment”) the Investment Management Trust Agreement, dated as of January 12, 2022 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”) and the Company, in order to allow the Company to extend the time to complete a business combination by fifteen (15) additional one (1) month periods until, October 18, 2024 (the “Termination Date” or the “Combination Period”). The Company is required to deposit $70,000 into the Trust Account for each of the fifteen (15) additional one (1) month extension periods. At the Special Meeting, the shareholders of the Company approved a special resolution to the Articles of Association to extend the time to consummate a business combination until October 18, 2024 and the Amendment in accordance with the Company’s Amended and Restated Memorandum of Association and Articles of Association (the “Articles of Association”).
In connection with the shareholders’ vote at the Special Meeting, 14,202,813 Class A shares were tendered for redemption. Shareholders validly redeemed their shares for $149,486,187, or approximately $10.53 per class A share. The trustee processed the redemptions on July 11, 2023 and distributed amounts from the Trust Account to the redeeming shareholders on July 26, 2023.
Immediately after the Special Meeting, the Company extended the time to complete the business combination by one (1) month to August 18, 2023, and deposited the sum of $70,000 into the Trust Account in accordance with the terms of the Trust Agreement. As of September 30, 2024, the Company has exercised thirteen (13) of the fifteen (15) additional one (1) month extension periods, depositing an aggregate of $910,000 into the Trust Account, to extend the time to complete the business combination to August 18, 2024.
On August 18, 2024, as approved by its shareholders at the annual general meeting held on August 18, 2024 (the “Annual Meeting”), the Company and its trustee, Continental Stock Transfer & Trust Company, amended the Investment Management Trust Agreement dated January 12, 2022, as amended on July 13, 2023, in order to allow the Company to extend the time to complete a business combination on a
month-to-month
basis, until July 18, 2025 (the “Extended Termination Date” or the “Extended Combination Period”) by placing $30,000 into the Company’s Trust Account. As of September 30, 2024, the Company has made two (2) deposits of $30,000, or $60,000 in the aggregate, to extend the time with which the Company has to complete a business combination to October 18, 2024. On October 15, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to November 18, 2024, and on November 14, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to December 18, 2024 (see Note
9).
Merger Agreement
On January 22, 2024, the Company entered into a Merger Agreement, by and among the Company, CSLM Merger Sub Inc. (“Merger Sub”), and Fusemachines Inc., a Delaware corporation (“Fusemachines”) (as it may be amended and/or restated from time to time, the “Merger Agreement”). The Merger Agreement provides that, among other things and upon the terms and subject to the conditions thereof, Merger Sub will merge with and into Fusemachines, after which Fusemachines will be the surviving corporation and a wholly owned subsidiary of the Company.
On August 27, 2024, the Company entered into an amendment to the Merger Agreement (the “Merger Agreement Amendment”) whereby the Company will continue out of the Cayman Islands and into the State of Delaware to
re-domicile
and become a newly formed Delaware corporation by means of a merger with the Company, pursuant to the Cayman Islands Companies law and the applicable provisions of the Delaware General Corporation Law, with such newly formed Delaware corporation becoming the surviving corporation in the merger. In addition the Merger Agreement Amendment includes a provision that increases the amount the Company may borrow from the Sponsor
from $2,000,000 to $2,750,000.
Risks and Uncertainties
Results of operations and the Company’s ability to complete an Initial Business Combination may be adversely affected by various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond its control. The business could be impacted by, among other things, downturns in the financial markets or in economic conditions, inflation, increases in interest rates, adverse developments af
fec
ting the financial services industry, and geopolitical instability, such as the military conflict in the Ukraine and the middle e
a
st.
 
Any of the foregoing consequences, including those we cannot yet predict, may cause our business, financial condition, results of operations and the price of our ordinary shares to be adversely affected. The Financial Statements do not include any adjustments that might result from the outcome of this uncertainty.
Going Concern Consideration
As of September 30, 2024 and December 31, 2023, the Company had $47,353 and $138,283 in cash, respectively, and a working capital deficit of $3,547,994 and $1,676,487, respectively, excluding
Marketable
Securities held in the Trust Account and the Deferred Underwriter
Commissions
 
liability.
The Company’s liquidity needs through September 30, 2024 had been satisfied through a payment from the Sponsor of $25,000 for Class B ordinary shares, par value $0.0001 per share (“Class B ordinary shares” and shares thereof, “founder shares”), the Initial Public Offering and the sale of the private placement warrants (see Note 3 and Note 4). Additionally, the Company drew on an unsecured promissory note to pay certain offering costs and an unsecured promissory note bearing interest at 4.75% per annum for working capital needs.
The Company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period within one year after the date that the Financial Statements are issued. Management plans to address this uncertainty through related party loans from the Sponsor, an affiliate of the Sponsor, or certain of the Company’s officers and directors or their affiliates (“Working Capital Loans”) (see Note 5) and effecting a Business Combination. However, there is no assurance that the Company’s plans to raise capital or to consummate a Business Combination will be successful or successful within the Extended Combination Period.
The Financial Statements do not include any adjustments that might result from the outcome of this uncertainty.
v3.24.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form
10-Q
and Article 8 of Regulation
S-X
of the Securities and Exchange Commission (the “SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying Financial Statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair statement of the financial position, operating results and cash flows for the periods presented.
The accompanying Financial Statements should be read in conjunction with the Company’s Annual Report on Form
10-K
for the year ended December 31, 2023 as filed with the SEC on April 1, 2024, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2023 is derived from the audited financial statements presented in the Company’s Annual Report on Form
10-K
for the year ended December 31, 2023. The interim results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future interim periods
Emerging Growth Company
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies.
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging
growth companies but any such election to opt out is irrevocable. The Company has
elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may ma
ke com
parison of the Company’s financial statements with another public company, which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those esti
mat
es.
Cash and Cash Equivalents
The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
Marketable Securities Held in Trust Account
Following the closing of the Initial Public Offering on January 18, 2022, an amount of $191,647,500 from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants were placed in the Trust Account and may be invested only in U.S. government securities with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule
2a-7
under the Investment Company Act which invest only in direct U.S. government treasury obligations. The Trust Account is intended as a holding place for funds pending the earliest to occur of: (i) the completion of the initial Business Combination; (ii) the redemption of any public shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to redeem 100% of the public shares if the Company does not complete the initial Business Combination within 12 months from the closing of the Initial Public Offering or (B) with respect to any other provision relating to shareholders’ rights or
pre-initial
Business Combination activity; or (iii) absent an initial Business Combination within 12 months from the closing of the Initial Public Offering, the return of the funds held in the Trust Account to the public shareholders as part of redemption of the public shares.
Net Income (Loss) Per Ordinary Share
The statements of operations include a presentation of income (loss) per Class A redeemable ordinary shares and income (loss) per
non-redeemable
Class A and Class B ordinary shares following the
two-class
method of income per common stock. In order to determine the net income (loss) attributable to both the Class A redeemable ordinary shares and
non-redeemable
Class A and Class B ordinary shares, the Company first considered the total income (loss) allocable to both sets of stock. This is calculated using the total net income (loss) less any dividends paid. For purposes of calculating net income (loss) per share, any remeasurement of the Class A ordinary shares subject to possible redemption was treated as dividends paid to the public shareholders. Subsequent to calculating the total income (loss) allocable to both sets of shares, the Company split the amount to be allocated using the total number of shares outstanding for each share class at each respective period, before and after redemptions and conversions, for the three and six months ended September 30, 2024 and 2023, reflective of the respective participation rights.
 
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2024 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2024
  
Net loss
    $ (132,909 ) 
Remeasurement of temporary equity to redemption value
      (610,118 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to red
e
mption value
   
$
(743,027
) 
  
 
 
  
 
    
For the Three Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      1,372,687        4,743,749        1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (278,639 )     $ (464,388 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      610,118        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
331,479
 
   
$
(464,388
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      3,220,241        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.10      $ (0.10 )     $ (0.10 ) 
 
    
For the

Nine Months

Ended

September 30, 2024
  
Net income
    $ 437,633  
Remeasurement of temporary equity to redemption value
      (2,399,140 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,961,507
) 
  
 
 
  
 
    
For the Nine Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
   
 
1,372,687
 
   
 
4,743,749
 
   
 
1
 
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (889,701 )    $ (1,071,806 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      2,399,140        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,509,439
 
   
$
(1,071,806
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      4,251,096        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.36      $ (0.23 )     $ (0.23 ) 
 
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2023 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2023
  
Net income
    $ 857,708  
Remeasurement of temporary equity to redemption value
      (1,380,072 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(522,364
) 
  
 
 
  
 
    
For the Three Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (306,030 )     $ (201,572 )     $ (14,762 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      1,380,072        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,074,042
 
   
$
(201,572
) 
   
$
(14,762
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      8,786,025        4,073,437        670,313  
Basic and diluted net income (loss) per share
    $ 0.12      $ (0.05 )     $ (0.02 ) 
 
    
For the

Nine Months

Ended

September 30, 2023
  
Net income
    $ 4,569,632  
Remeasurement of temporary equity to redemption value
      (5,804,241 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,234,609
) 
  
 
 
  
 
    
For the Nine Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (875,826 )     $ (201,572 )     $ (157,211 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      5,804,241        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
4,928,415
 
   
$
(201,572
) 
   
$
(157,211
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      15,541,353        1,372,733         3,371,017  
Basic and diluted net income (loss) per share
    $ 0.32      $ (0.15 )     $ (0.05 ) 
Fair value of Financial Instruments
ASC Topic 820, Fair Value Measurement, defines fair value as the amount that would be received to sell an asset or paid to transfer a li
abil
ity, in an orderly transaction between market participants.
Fair value measurements are classified on a three-tier hierarchy as follows:
 
  •  
Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
 
  •  
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
 
  •  
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as calculations derived from valuation techniques in which one or more significant inputs or significant value drivers are observable.
In many cases, if a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy described above, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.
The fair value of the Company’s assets and liabilities, which qualify as financial instruments approximates the carrying amounts represented in the balance sheet, primarily due to its short-term nature.
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then
re-valued
at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or
non-current
based on whether or not
net-cash
settlement or conversion of the instrument could be required within 12 months of the balance sheet date.
 
Warrants and Rights
The Company accounts for the public and private warrants and rights as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance in FASB ASC Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Pursuant to the Company’s evaluation, the Company concluded that the public and private warrants and rights do not meet the criteria to be accounted for as liability under ASC 480. The Company further evaluated the public and private warrants and rights under “ASC
815-40,
Derivatives and Hedging — Contracts in Entity’s Own Equity” (“ASC
815-40”)
and concluded that the public warrants, private placement warrants and rights are indexed to the Company’s own stock and meet the criteria to be classified in shareholders’ deficit.
Ordinary Shares Subject to Possible Redemption
Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. In connection with the shareholders’ vote at the Special meeting of shareholders held by the Company on June 29, 2023, 14,202,813 Class A ordinary shares were tendered for redemption for an aggregate value of $149,486,187 and distributed from the Trust Account on July 26, 2023. In connection with the shareholders’ vote at the Annual Meeting of the shareholders held by the Company on August 18, 2024, 3,399,500 Class A ordinary shares were tendered for redemption at an aggregate value of $38,596,223 and distributed from the Trust Account on August 21, 2024. Accordingly, at September 30, 2024, 1,372,687 shares of Class A ordinary shares subject to possible redemption is presented, at redemption value equal to the amount held in the Trust Account, as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.
The proceeds of the offering were allocated to the Class A ordinary shares and the Public Warrants and Rights based on their relative fair values. The Company recognizes changes in redemption value of Class A ordinary shares subject to possible redemption immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Such changes are reflected in additional
paid-in
capital, or in the absence of additional capital, in accumulated deficit. The Company has recorded remeasurements of $610,118 and $1,380,072
 
for the three months ended September 30, 2024 and 2023, respectively, and $2,399,140 and $5,804,241 for the nine months ended September 30, 2024 and 2023, respectively.
Income taxes
The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability, method as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liability is settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the operation of statement in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. There were no unrecognized tax benefits as of September 30, 2024 or December 31, 2023. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September 30, 2024 or December 31, 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.
The Company is considered an exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented.
 
Covenant Fees
Pursuant to the Merger Agreement, Fusemachines is covenanted to deliver to the Company its audited financial statements for the twelve
mo
nth periods ended December 31, 2023 and 2022 (the “Fusemachines Audited Financial Statements”) for inclusion in the registration statement on Form
S-4
to be filed by the Company in connection with the Business Combination (the “Registration Statement”), and that such Fusemachines Audited Financial Statements have been prepared in conformity with U.S. GAAP applied on a consistent basis and in accordance with the requirements of the Public Company Accounting Oversight Board for public companies. Fusemachines has covenanted to provide the Fusemachines Audited Financial Statements no later than February 29, 2024, or incur delay fees in the amount equal to $35,000 for the first
one-month
delay to March 31, 2024
(pro-rated
for a partial month), $50,000 for the second
one-month
delay to April 30, 2024 and thereafter $70,000 for each subsequent
one-month
delay
(pro-rated
for any partial month). Fusemachines provided the Fusemachines Audited Financial Statements to the Company in September 2024. As such, the Company has recorded $210,000 and $435,000 of covenant fees as other income on the condensed consolidated statements of operations for the three and nine months ended September 30, 2024, respectively, and as an other receivable on the condensed consolidated balance sheets as of September 30, 2024. Collection of the covenant fees is not probable as of September 30, 2024. As such, the Company established a reserve for credit losses against the other receivable. The Company has recorded $210,000 and $435,000 to credit losses as other expense on the condensed consolidated statements of operations for the three and nine months ended September 30, 2024, respectively.
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.
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 September 30, 2024 and December 31, 2023, 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 concluded that there are no additional new pronouncements that may have a material impact on the results of operations, financial condition, or cash flows, based on the current information.
v3.24.3
Initial Public Offering
 9 Months Ended
Sep. 30, 2024
Initial Public Offering [Abstract]  
INITIAL PUBLIC OFFERING
NOTE 3 — INITIAL PUBLIC OFFERING
Pursuant to the Initial Public Offering, the Company sold 18,975,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of Class A ordinary shares, one right and
one-half
of one warrant (“Public Warrant”). Each whole Public Warrant is anticipated to entitle the holder to purchase one share of Class A ordinary shares at a price of $11.50 per share, subject to adjustment (see Note 6).
An aggregate of $10.10 per Unit sold in the Initial Public Offering was held in the Trust Account and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule
2a-7
of the Investment Company Act, as determined by the Company.
v3.24.3
Private Placement
 9 Months Ended
Sep. 30, 2024
Private Placement [Abstract]  
PRIVATE PLACEMENT
NOTE 4 — PRIVATE PLACEMENT
The Company entered into an agreement with the Sponsor pursuant to which the Sponsor purchased an aggregate of 7,942,500 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, generating proceeds of $7,942,500 in the aggregate in a private placement that occurred substantially concurrently with the closing of the Initial Public Offering. Each Private Placement Warrant is exercisable to purchase one share of ordinary shares at an exercise price of $11.50 per share, subject to adjustment (see Note 6). A portion of the proceeds from the Private Placement Warrants will be added to the proceeds from the Initial Public Offering to be held in the Trust Account. If the Company does not complete a Business Combination within the Extended Combination Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law), and the Private Placement Warrants will expire worthless.
v3.24.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure
NOTE 5 — RELATED PARTY TRANSACTIONS
Founder Shares
In July 2021, the Sponsor purchased 4,743,750 shares of the Company’s Class B ordinary shares (the “Founder Shares”) for an aggregate purchase price of $25,000. The Founder Shares included an aggregate of up to 618,750 shares subject to forfeiture by the Sponsor to the extent that the underwriter’s overallotment was not exercised in full or in part, so that the number of Founder Shares collectively represented approximately 20% of the Company’s issued and outstanding shares after the Initial Public Offering. In August 2021, the Sponsor transferred 50,000 founder shares to each of the Company’s independent director nominees. The Company will account for the transfer of founder shares under ASC
718-10-15-4
and record a compensation expense upon completion of a Business Combination.
The Sponsor has agreed, subject to certain limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier of (A) one year after the completion of a Business Combination or (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share capitalization, share subdivisions, reorganizations, recapitalizations and the like) for any 20 trading days within any
30-trading
day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the Company’s shareholders having the right to exchange their Class A ordinary shares for cash, securities or other property.
Administrative Services Agreement
The Company entered into a support services agreement, commencing on the effective date of the initial public offering, pursuant to which the Company will pay the Sponsor a total of $10,000 per month for office space, administrative and support services. The Sponsor has waived all payments under the support services agreement. The Company has recorded the waived payments as capital contributions from the Sponsor and has recorded $30,000 and $0 to the consolidated statements of operations for the three months ended September 30, 2024 and 2023, respectively, and $90,000 and $0 to the consolidated statements of operations for the nine months ended September 30, 2024 and 2023, respectively.
Promissory Note — Related Party
In July 2021, the Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company may 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 September 30, 2024 and December 31, 2023.
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. On August 19, 2024, the Company issued a second amended and restated promissory note (the “2
nd
A&R WC Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $2,750,000. The 2
nd
A&R WC Promissory Note does not amend any other existing terms.
The Company drew an aggregate of $2,350,000 and has accrued $97,903 of interest on principal amounts outstanding as of September 30, 2024 and drew an aggregate of $1,230,000 and has accrued $28,288 of interest on principal amounts outstanding as of December 31, 2023.
 
Related Party Loans
In addition, in order to finance transaction costs in connection with a Business Co
mbin
ation, the Sponsor, an affiliate of the Sponsor, or certain of the Company’s officers and directors or their affiliates may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $2,000,000 of such Working Capital Loans may be convertible into warrants, at a price of $1.00 per warrant, of the post Business Combination entity. If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The warrants would be identical to the Private Placement Warrants. As of September 30, 2024 and December 31, 2023, no Working Capital Loans were outstanding.
v3.24.3
Shareholders' Deficit
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
SHAREHOLDERS' DEFICIT
NOTE 6 — SHAREHOLDERS’ DEFICIT
Preference Shares — The Company is authorized to issue 5,000,000 shares of preference shares with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s board of directors. At September 30, 2024 and December 31, 2023, there were no shares of preference shares issued or outstanding.
Class A Ordinary shares — The Company is authorized to issue 500,000,000 Class A ordinary shares with a par value of $0.0001 per share. Holders of Class A ordinary shares are entitled to one vote for each share. In connection with the shareholders’ vote at the Special Meeting of shareholders held by the Company on June 29, 2023, 14,202,813 redeemable Class A ordinary shares were tendered for redemption for an aggregate value of $149,486,187 and distributed from the Trust Account on July 26, 2023. On July 13, 2023, the Company issued 4,743,749 shares of its
non-redeemable
Class A ordinary shares to the Sponsor upon the conversion of an equal number of Class B ordinary shares. The
non-redeemable
Class A ordinary shares are the same as the Class B ordinary shares in that they do not have redemption rights and are not entitled to proceeds from liquidation from the Trust Account if the Company does not consummate a business combination. However, unlike the Class B ordinary shares, the
non-redeemable
Class A ordinary shares do not have voting rights to appoint or remove directors of the Company. In connection with the shareholders’ vote at the Annual Meeting of shareholders held by the Company on August 18, 2024, 3,399,500 redeemable Class A ordinary shares were tendered for redemption for an aggregate value of $38,596,223 and distributed from the Trust Account on August 21, 2024. At September 30, 2024 and December 31, 2023, there were 4,743,749
non-redeemable
Class A ordinary shares issued or outstanding, excluding 1,372,687 and 4,772,187 redeemable Class A ordinary shares issued and outstanding subject to possible redemption, at redemption value, respectively.
Class B Ordinary shares — The Company is authorized to issue 50,000,000 shares of Class B ordinary shares with a par value of $0.0001 per share. On July 13, 2023, the Company issued 4,743,749 shares of its
non-redeemable
Class A ordinary shares to the Sponsor upon the conversion of an equal number of Class B ordinary shares. At September 30, 2024 and December 31, 2023, there was one (
1
) shares of Class B ordinary shares issued and outstanding.
With respect to any other matter submitted to a vote of our shareholders, including any vote in connection with our initial business combination, except as required by law, holders of our Founder Shares and holders of our public shares will vote together as a single class, with each share entitling the holder to one vote. However, prior to the consummation of the Business Combination, holders of the Class B ordinary shares will have the right to elect all of the Company’s directors and may remove members of the board of directors for any reason.
The shares of Class B ordinary shares will automatically convert into Class A ordinary shares at the time of a Business Combination on a
one-for-one
basis, subject to adjustment. In the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B ordinary shares shall convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding shares of Class B ordinary shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all shares of Class B ordinary shares will equal, in the aggregate, on an
as-converted
basis, 20% of the sum of the total number of all shares of ordinary shares outstanding upon the completion of the Initial Public Offering plus all Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination and excluding any private placement warrants issued to our sponsor, its affiliates or any member of our management team upon conversion of working capital loans.
 
Rights — Except in cases where the Company is not the surviving company in a Business Combination, each holder of a right will automatically receive
one-tenth
(1/10) of one Class A ordinary share upon consummation of a Business Combination, even if the holder of a right converted all shares held by him, her or it in connection with a Business Combination or an amendment to the Company’s Amended and Restated Certificate of Incorporation with respect to its
pre-business
combination activities. In the event that the Company will not be the surviving company upon completion of a Business Combination, each holder of a right will be required to affirmatively convert his, her or its rights in order to receive the
one-tenth
(1/10) of a share underlying each right upon consummation of the Business Combination.
The Company will not issue fractional shares in connection with an exchange of rights. Fractional shares will either be rounded down to the nearest whole share or otherwise addressed in accordance with the applicable provisions of the Cayman Islands law. As a result, the holders of the rights must hold rights in multiples of 10 in order to receive shares for all of the holders’ rights upon closing of a Business Combination. If the Company is unable to complete an initial Business Combination within the Extended Combination Period and the Company redeems the Public Shares for the funds held in the Trust Account, holders of rights will not receive any of such funds for their rights and the rights will expire worthless.
Warrants — Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. Accordingly, unless a unit holder purchases at least two units, they will not be able to receive or trade a whole warrant. The Public Warrants will become exercisable on the later of (a) 12 months from the closing of the Initial Public Offering and (b) 30 days after the completion of a Business Combination.
The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act with respect to the Class A ordinary shares underlying the Public Warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No Public Warrant will be exercisable, and the Company will not be obligated to issue any Class A ordinary shares upon exercise of a Public Warrant unless the share of Class A ordinary shares issuable upon such Public Warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the Public Warrants.
The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A ordinary shares issuable upon exercise of the public warrants, and the Company will use its commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of a Business Combination, and to maintain the effectiveness of such registration statement and a current prospectus relating to those Class A ordinary shares until the public warrants expire or are redeemed, as specified in the public warrant agreement; provided that if the Class A ordinary shares is at the time of any exercise of a public warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants who exercise their public warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but it will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. If a registration statement covering the Class A ordinary shares issuable upon exercise of the public warrants is not effective by the 60th business day after the closing of a Business Combination, public warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise public warrants on a “cashless basis” in accordance with Section 3(a) (9) of the Securities Act or another exemption, but the Company will use its commercially reasonably efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.
Redemption of warrants when the price per Class A ordinary shares equals or exceeds $18.00. Once the public warrants become exercisable, the Company may redeem the Public Warrants:
 
  •  
in whole and not in part;
 
  •  
at a price of $0.01 per warrant;
 
  •  
upon not less than 30 days’ prior written notice of redemption to each warrant holder; and
 
  •  
if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a
30-trading
day period ending three trading days before the Company sends the notice of redemption to the warrant holders. If and when the Public Warrants become redeemable by the Company, it may exercise its redemption right even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws.
 
In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in con
nec
tion with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A ordinary shares (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.
The Private Placement Warrants are identical to the Public Warrants included in the Units being sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A ordinary shares issuable upon the exercise of the Private Placement Warrants are not transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are
non-redeemable
by the Company.
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
NOTE 7 — COMMITMENTS AND CONTINGENCIES
Registration and Shareholder Rights
The holders of the Founder Shares, Private Placement Warrants, and warrants that may be issued upon conversion of Working Capital Loans (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the Initial Public Offering, requiring the Company to register such securities for resale. The holders will have the right to require us to register for resale these securities pursuant to a shelf registration under Rule 415 under the Securities Act. The holders of a majority of these securities will also be entitled to make up to three demands, plus short form registration demands, that we register such securities. In addition, the holders will be entitled to certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The Company granted the underwriter a
45-day
option from the date of the Initial Public Offering to purchase up to 2,475,000 additional Units to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discount. The underwriters exercised the over-allotment option in full on January 18, 2022, the date of the Initial Public Offering. The underwriter was entitled to a cash underwriting discount of $0.20 per Unit, or $3,795,000 in the aggregate, which was paid upon the closing of the Initial Public Offering. In addition, the underwriter is entitled to a deferred fee of $0.35 per Unit, or $6,641,250 in the aggregate. The deferred fee is payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.
On November 28, 2023, the Company and the underwriter entered into an agreement under which (i) the Sponsor will transfer 426,000 Class A ordinary shares held by the Sponsor to the underwriter upon the closing of the Company’s initial business combination and (ii) the underwriter will waive the deferred underwriter fee payable and any deferred underwriting commissions payable pursuant to the underwriter agreement dated April 22, 2021. For avoidance of doubt, the agreement applies only if the initial Business Combination is consummated, and the transfer of shares is effective and completed. Except as specifically amended in the agreement, all terms of the underwriting agreement dated April 22, 2021 shall remain in full force and effect.
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 Services Agreements until the consummation of the initial business combination.
 
Capital Markets Advisory Agreement
The Company entered into a capital markets advisory agreement (the “Advisory Agreement”) with a service provider (the “Advisor”) on June 21, 2024 to provide capital markets advisory services to the Company. In accordance with the Advisory Agreement, the Advisor will be paid an advisory fee comprised of $100,000 in cash and 75,000 common shares of the post initial business combination entity (the “Advisory Fee”). The Advisory agreement is contingent upon consummation of the initial business combination. The cash compensation due to the Advisor is in scope of ASC 450 Contingencies (“ASC 450”) and the share based compensation due to the Advisor is in scope of ASC 718. The consummation of the initial business combination is considered a loss contingency under ASC 450 and is considered a performance condition under ASC 718 and the Advisory Fee should not be recognized until considered probable. As business combinations are not considered probable until consummated, the Company will not recognize compensation costs related to the Advisory Fee until the consummation of the initial business combination.
v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 8 — FAIR VALUE MEASUREMENTS
At September 30, 2024 and December 31, 2023, the Company’s marketable securities held in the Trust Account were valued at $15,779,835 and $51,976,918, respectively. The marketable securities held in the Trust Account must be recorded on the balance sheet at fair value and are subject to
re-measurement
at each balance sheet date. With each
re-
measurement, the valuations will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations.
The following table presents the fair value information, as of September 30, 2024 and December 31, 2023, of the Company’s financial assets that were accounted for at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. The Company’s marketable securities held in the Trust Account are based on dividend and interest income and market fluctuations in the value of invested marketable securities, which are considered observable. The fair value of the marketable securities held in trust is classified within Level 1 of the fair value hierarchy.
The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value on a recurring basis:
 
    
(Level 1)
     
(Level 2)
     
(Level 3)
  
As of September 30, 2024
         
Assets:
         
Treasury Trust Funds held in Trust Account
    $ 15,779,835      $ —       $ —   
As of December 31, 2023
         
Assets:
         
Treasury Trust Funds held in Trust Account
    $ 51,976,918      $ —       $ —   
v3.24.3
Subsequent Events
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
NOTE 9 — SUBSEQUENT EVENT
S
On October 2, 2024, the Company drew an additional $
200,000
on the 2nd A&R WC Promissory Note.
On October 15, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to November 18, 2024.
On November 13, 2024, the Company drew an additional $200,000 on the 2nd A&R WC Promissory Note.
On November 14, 2024, the Company deposited $30,000 into the Trust Account to extend the time with which the Company has to complete a business combination to December 18, 2024.
v3.24.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form
10-Q
and Article 8 of Regulation
S-X
of the Securities and Exchange Commission (the “SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying Financial Statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair statement of the financial position, operating results and cash flows for the periods presented.
The accompanying Financial Statements should be read in conjunction with the Company’s Annual Report on Form
10-K
for the year ended December 31, 2023 as filed with the SEC on April 1, 2024, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2023 is derived from the audited financial statements presented in the Company’s Annual Report on Form
10-K
for the year ended December 31, 2023. The interim results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future interim periods
Emerging Growth Company
Emerging Growth Company
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies.
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to
non-emerging
growth companies but any such election to opt out is irrevocable. The Company has
elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may ma
ke com
parison of the Company’s financial statements with another public company, which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those esti
mat
es.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
Marketable Securities Held in Trust Account
Marketable Securities Held in Trust Account
Following the closing of the Initial Public Offering on January 18, 2022, an amount of $191,647,500 from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants were placed in the Trust Account and may be invested only in U.S. government securities with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule
2a-7
under the Investment Company Act which invest only in direct U.S. government treasury obligations. The Trust Account is intended as a holding place for funds pending the earliest to occur of: (i) the completion of the initial Business Combination; (ii) the redemption of any public shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to redeem 100% of the public shares if the Company does not complete the initial Business Combination within 12 months from the closing of the Initial Public Offering or (B) with respect to any other provision relating to shareholders’ rights or
pre-initial
Business Combination activity; or (iii) absent an initial Business Combination within 12 months from the closing of the Initial Public Offering, the return of the funds held in the Trust Account to the public shareholders as part of redemption of the public shares.
Net Income (Loss) Per Ordinary Share
Net Income (Loss) Per Ordinary Share
The statements of operations include a presentation of income (loss) per Class A redeemable ordinary shares and income (loss) per
non-redeemable
Class A and Class B ordinary shares following the
two-class
method of income per common stock. In order to determine the net income (loss) attributable to both the Class A redeemable ordinary shares and
non-redeemable
Class A and Class B ordinary shares, the Company first considered the total income (loss) allocable to both sets of stock. This is calculated using the total net income (loss) less any dividends paid. For purposes of calculating net income (loss) per share, any remeasurement of the Class A ordinary shares subject to possible redemption was treated as dividends paid to the public shareholders. Subsequent to calculating the total income (loss) allocable to both sets of shares, the Company split the amount to be allocated using the total number of shares outstanding for each share class at each respective period, before and after redemptions and conversions, for the three and six months ended September 30, 2024 and 2023, reflective of the respective participation rights.
 
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2024 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2024
  
Net loss
    $ (132,909 ) 
Remeasurement of temporary equity to redemption value
      (610,118 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to red
e
mption value
   
$
(743,027
) 
  
 
 
  
 
    
For the Three Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      1,372,687        4,743,749        1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (278,639 )     $ (464,388 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      610,118        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
331,479
 
   
$
(464,388
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      3,220,241        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.10      $ (0.10 )     $ (0.10 ) 
 
    
For the

Nine Months

Ended

September 30, 2024
  
Net income
    $ 437,633  
Remeasurement of temporary equity to redemption value
      (2,399,140 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,961,507
) 
  
 
 
  
 
    
For the Nine Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
   
 
1,372,687
 
   
 
4,743,749
 
   
 
1
 
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (889,701 )    $ (1,071,806 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      2,399,140        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,509,439
 
   
$
(1,071,806
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      4,251,096        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.36      $ (0.23 )     $ (0.23 ) 
 
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2023 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2023
  
Net income
    $ 857,708  
Remeasurement of temporary equity to redemption value
      (1,380,072 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(522,364
) 
  
 
 
  
 
    
For the Three Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (306,030 )     $ (201,572 )     $ (14,762 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      1,380,072        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,074,042
 
   
$
(201,572
) 
   
$
(14,762
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      8,786,025        4,073,437        670,313  
Basic and diluted net income (loss) per share
    $ 0.12      $ (0.05 )     $ (0.02 ) 
 
    
For the

Nine Months

Ended

September 30, 2023
  
Net income
    $ 4,569,632  
Remeasurement of temporary equity to redemption value
      (5,804,241 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,234,609
) 
  
 
 
  
 
    
For the Nine Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (875,826 )     $ (201,572 )     $ (157,211 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      5,804,241        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
4,928,415
 
   
$
(201,572
) 
   
$
(157,211
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      15,541,353        1,372,733         3,371,017  
Basic and diluted net income (loss) per share
    $ 0.32      $ (0.15 )     $ (0.05 ) 
Fair value of Financial Instruments
Fair value of Financial Instruments
ASC Topic 820, Fair Value Measurement, defines fair value as the amount that would be received to sell an asset or paid to transfer a li
abil
ity, in an orderly transaction between market participants.
Fair value measurements are classified on a three-tier hierarchy as follows:
 
  •  
Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
 
  •  
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
 
  •  
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as calculations derived from valuation techniques in which one or more significant inputs or significant value drivers are observable.
In many cases, if a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy described above, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.
The fair value of the Company’s assets and liabilities, which qualify as financial instruments approximates the carrying amounts represented in the balance sheet, primarily due to its short-term nature.
Derivative Financial Instruments
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then
re-valued
at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or
non-current
based on whether or not
net-cash
settlement or conversion of the instrument could be required within 12 months of the balance sheet date.
Warrants and Rights
Warrants and Rights
The Company accounts for the public and private warrants and rights as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance in FASB ASC Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Pursuant to the Company’s evaluation, the Company concluded that the public and private warrants and rights do not meet the criteria to be accounted for as liability under ASC 480. The Company further evaluated the public and private warrants and rights under “ASC
815-40,
Derivatives and Hedging — Contracts in Entity’s Own Equity” (“ASC
815-40”)
and concluded that the public warrants, private placement warrants and rights are indexed to the Company’s own stock and meet the criteria to be classified in shareholders’ deficit.
Ordinary Shares Subject to Possible Redemption
Ordinary Shares Subject to Possible Redemption
Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. In connection with the shareholders’ vote at the Special meeting of shareholders held by the Company on June 29, 2023, 14,202,813 Class A ordinary shares were tendered for redemption for an aggregate value of $149,486,187 and distributed from the Trust Account on July 26, 2023. In connection with the shareholders’ vote at the Annual Meeting of the shareholders held by the Company on August 18, 2024, 3,399,500 Class A ordinary shares were tendered for redemption at an aggregate value of $38,596,223 and distributed from the Trust Account on August 21, 2024. Accordingly, at September 30, 2024, 1,372,687 shares of Class A ordinary shares subject to possible redemption is presented, at redemption value equal to the amount held in the Trust Account, as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.
The proceeds of the offering were allocated to the Class A ordinary shares and the Public Warrants and Rights based on their relative fair values. The Company recognizes changes in redemption value of Class A ordinary shares subject to possible redemption immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Such changes are reflected in additional
paid-in
capital, or in the absence of additional capital, in accumulated deficit. The Company has recorded remeasurements of $610,118 and $1,380,072
 
for the three months ended September 30, 2024 and 2023, respectively, and $2,399,140 and $5,804,241 for the nine months ended September 30, 2024 and 2023, respectively.
Income taxes
Income taxes
The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability, method as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liability is settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the operation of statement in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. There were no unrecognized tax benefits as of September 30, 2024 or December 31, 2023. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September 30, 2024 or December 31, 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.
The Company is considered an exempted Cayman Islands Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented.
 
Covenant Fees
Pursuant to the Merger Agreement, Fusemachines is covenanted to deliver to the Company its audited financial statements for the twelve
mo
nth periods ended December 31, 2023 and 2022 (the “Fusemachines Audited Financial Statements”) for inclusion in the registration statement on Form
S-4
to be filed by the Company in connection with the Business Combination (the “Registration Statement”), and that such Fusemachines Audited Financial Statements have been prepared in conformity with U.S. GAAP applied on a consistent basis and in accordance with the requirements of the Public Company Accounting Oversight Board for public companies. Fusemachines has covenanted to provide the Fusemachines Audited Financial Statements no later than February 29, 2024, or incur delay fees in the amount equal to $35,000 for the first
one-month
delay to March 31, 2024
(pro-rated
for a partial month), $50,000 for the second
one-month
delay to April 30, 2024 and thereafter $70,000 for each subsequent
one-month
delay
(pro-rated
for any partial month). Fusemachines provided the Fusemachines Audited Financial Statements to the Company in September 2024. As such, the Company has recorded $210,000 and $435,000 of covenant fees as other income on the condensed consolidated statements of operations for the three and nine months ended September 30, 2024, respectively, and as an other receivable on the condensed consolidated balance sheets as of September 30, 2024. Collection of the covenant fees is not probable as of September 30, 2024. As such, the Company established a reserve for credit losses against the other receivable. The Company has recorded $210,000 and $435,000 to credit losses as other expense on the condensed consolidated statements of operations for the three and nine months ended September 30, 2024, respectively.
Related Parties
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.
Concentration of Credit Risk
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 September 30, 2024 and December 31, 2023, 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
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 concluded that there are no additional new pronouncements that may have a material impact on the results of operations, financial condition, or cash flows, based on the current information.
v3.24.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Schedule of Earnings Per Share Basic and Diluted
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2024 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2024
  
Net loss
    $ (132,909 ) 
Remeasurement of temporary equity to redemption value
      (610,118 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to red
e
mption value
   
$
(743,027
) 
  
 
 
  
 
    
For the Three Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      1,372,687        4,743,749        1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (278,639 )     $ (464,388 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      610,118        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
331,479
 
   
$
(464,388
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      3,220,241        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.10      $ (0.10 )     $ (0.10 ) 
 
    
For the

Nine Months

Ended

September 30, 2024
  
Net income
    $ 437,633  
Remeasurement of temporary equity to redemption value
      (2,399,140 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,961,507
) 
  
 
 
  
 
    
For the Nine Months Ended

September 30, 2024
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
   
 
1,372,687
 
   
 
4,743,749
 
   
 
1
 
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net loss including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (889,701 )    $ (1,071,806 )    $ 0  
Deemed dividend for remeasurement of temporary equity to redemption value
      2,399,140        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,509,439
 
   
$
(1,071,806
)
   
$
0
 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      4,251,096        4,743,749        1  
Basic and diluted net income (loss) per share
    $ 0.36      $ (0.23 )     $ (0.23 ) 
 
The following tables reflect the calculation of basic and diluted net income (loss) per ordinary shares for the three and six months ended September 30, 2023 (in dollars, except per share amounts):
 
    
For the

Three Months

Ended

September 30, 2023
  
Net income
    $ 857,708  
Remeasurement of temporary equity to redemption value
      (1,380,072 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(522,364
) 
  
 
 
  
 
    
For the Three Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (306,030 )     $ (201,572 )     $ (14,762 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      1,380,072        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
1,074,042
 
   
$
(201,572
) 
   
$
(14,762
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      8,786,025        4,073,437        670,313  
Basic and diluted net income (loss) per share
    $ 0.12      $ (0.05 )     $ (0.02 ) 
 
    
For the

Nine Months

Ended

September 30, 2023
  
Net income
    $ 4,569,632  
Remeasurement of temporary equity to redemption value
      (5,804,241 ) 
  
 
 
  
Net loss including remeasurement of temporary equity to redemption value
   
$
(1,234,609
) 
  
 
 
  
 
    
For the Nine Months Ended

September 30, 2023
  
    
Class A

Redeemable
     
Class A

Non-redeemable
     
Class B

Non-redeemable
  
Total number of shares
      4,772,187        4,743,749         1  
Basic and diluted net income (loss) per share
         
Numerator:
         
Allocation of net income including remeasurement of temporary equity to redemption value based on ownership percentage
    $ (875,826 )     $ (201,572 )     $ (157,211 ) 
Deemed dividend for remeasurement of temporary equity to redemption value
      5,804,241        —         —   
  
 
 
     
 
 
     
 
 
  
Total net income (loss) allocated by class
   
$
4,928,415
 
   
$
(201,572
) 
   
$
(157,211
) 
  
 
 
     
 
 
     
 
 
  
Denominator:
         
Weighted-average shares outstanding
      15,541,353        1,372,733         3,371,017  
Basic and diluted net income (loss) per share
    $ 0.32      $ (0.15 )     $ (0.05 ) 
v3.24.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Summary of the Fair Value Hierarchy the Company's Assets and Liabilities that were Accounted for at Fair Value on a Recurring Basis
The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value on a recurring basis:
 
    
(Level 1)
     
(Level 2)
     
(Level 3)
  
As of September 30, 2024
         
Assets:
         
Treasury Trust Funds held in Trust Account
    $ 15,779,835      $ —       $ —   
As of December 31, 2023
         
Assets:
         
Treasury Trust Funds held in Trust Account
    $ 51,976,918      $ —       $ —   
v3.24.3
Organization and Business Background - Additional Information (Detail) - USD ($)
 9 Months Ended 12 Months Ended
Nov. 14, 2024
Oct. 15, 2024
Sep. 30, 2024
Aug. 18, 2024
Aug. 18, 2023
Jul. 13, 2023
Jan. 18, 2022
Sep. 30, 2024
Dec. 31, 2023
Dec. 31, 2022
Aug. 27, 2024
Aug. 21, 2024
Sep. 05, 2023
Jul. 11, 2023
Jun. 29, 2023
Apr. 10, 2023
Feb. 27, 2023
Common stock, conversion basis             one right to acquire one-tenth of an Ordinary Share, and one-half of one redeemable warrant 20                  
Common stock, par or stated value per share             $ 0.0001                    
Purchase of ordinary share     1       1 1                  
Purchase of ordinary share, per share     $ 11.5       $ 11.5 $ 11.5                  
Shares issued, price per share             $ 10                    
Proceeds from issuance initial public offering             $ 189,750,000 $ 191,647,500                  
Proceeds from issuance of warrants                   $ 7,942,500              
Class of warrants or rights redemption price per unit                   $ 10              
Company's operating account               2,250,000                  
Percentage of public shares to be redeemed in case business combination is not consummated             100.00%   100.00%                
Cash     $ 47,353         47,353 $ 138,283                
Assets held in trust           $ 70,000                      
Payments to acquire restricted investments   $ 30,000   $ 30,000 $ 70,000   $ 191,647,500 910,000                  
Amount to be deposited in the trust account for each extension           $ 70,000                      
Net working capital (deficit)     3,547,994         $ 3,547,994 $ 1,676,487                
Subsequent Event [Member]                                  
Business combination $ 30,000 $ 30,000                              
Deposit One [Member]                                  
Payments to acquire restricted investments     30,000                            
Deposit Two [Member]                                  
Payments to acquire restricted investments     $ 60,000                            
Commercial Paper [Member]                                  
Debt instrument interest rate                                 4.75%
Maximum [Member] | Merger Agreement Amendment [Member]                                  
Line of Credit Facility, Maximum Borrowing Capacity                     $ 2,750,000            
Minimum [Member] | Merger Agreement Amendment [Member]                                  
Line of Credit Facility, Maximum Borrowing Capacity                     $ 2,000,000            
Sponsor [Member]                                  
Minimum notice period to be given to the holders of warrants                   30 days              
Private Placement Warrants [Member] | Sponsor [Member]                                  
Class of warrant or right issued during period warrants                   7,942,500              
Sale of stock, price per share     $ 1         $ 1   $ 1              
IPO [Member]                                  
Stock issued during period, shares             18,975,000 18,975,000                  
Shares issued, price per share     10         $ 10                  
Over-Allotment Option [Member]                                  
Stock issued during period, shares             2,475,000                    
Common Class A [Member]                                  
Stock issued during period, shares           4,743,749   4,743,749 4,743,749                
Common stock, conversion basis             one                    
Common stock, par or stated value per share     $ 0.0001         $ 0.0001 $ 0.0001                
Temporary equity, shares outstanding     1,372,687 3,399,500       1,372,687 4,772,187         14,202,813 14,202,813    
Temporary equity, aggregate amount of redemption requirement     $ 149,486,187         $ 149,486,187       $ 38,596,223   $ 149,486,187 $ 149,486,187    
Temporary equity, redemption price per share                           $ 10.53      
Common Class B [Member]                                  
Stock issued during period, shares           4,743,749                      
Common stock, par or stated value per share     $ 0.0001         $ 0.0001 $ 0.0001                
Common Class B [Member] | Sponsor [Member]                                  
Common stock, par or stated value per share     $ 0.0001         $ 0.0001                  
Sale of stock, price per share                         $ 0.006     $ 0.006  
Stock shares issued during the period for services value               $ 25,000                  
v3.24.3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Oct. 15, 2024
Aug. 18, 2024
Aug. 18, 2023
Jan. 18, 2022
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Aug. 21, 2024
Dec. 31, 2023
Jul. 11, 2023
Jun. 29, 2023
Proceeds from issuance initial public offering $ 30,000 $ 30,000 $ 70,000 $ 191,647,500     $ 910,000          
Term of restricted investments       185 days                
Percentage of public shares to be redeemed in case business combination is not consummated       100.00%           100.00%    
Effective income tax rate reconciliation, percent             50.00%          
Unrecognized tax benefits         $ 0   $ 0     $ 0    
Unrecognized tax benefits, income tax penalties and interest accrued         0   0     $ 0    
Delayed fee payable one month from now         35,000   35,000          
Delay fees payable two months from now         50,000   50,000          
Delay of filing fee third month and thereafter per month         70,000   70,000          
Other non operating income miscellaneous fee         210,000 $ 0 435,000 $ 0        
Remeasurement of common stock subject to possible redemption         610,118 1,380,072 2,399,140 5,804,241        
Provision for credit losses on covenant receivable         $ 210,000 $ 0 $ 435,000 $ 0        
From The Completion Of Business Combination [Member]                        
Period after which the warrants are exercisable       12 months                
Common Class A [Member]                        
Temporary equity, shares outstanding   3,399,500     1,372,687   1,372,687     4,772,187 14,202,813 14,202,813
Temporary equity, aggregate amount of redemption requirement         $ 149,486,187   $ 149,486,187   $ 38,596,223   $ 149,486,187 $ 149,486,187
v3.24.3
Summary of Significant Accounting Policies - Summary of Earnings Per Share Basic and Diluted (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Schedule Of Earnings Per Share Basic And Diluted [Line Items]                
Net income (loss) $ (132,909) $ 422,450 $ 148,092 $ 857,708 $ 2,093,294 $ 1,618,630 $ 437,633 $ 4,569,632
Remeasurement of Class A redeemable shares to redemption value (610,118)     (1,380,072)     (2,399,140) (5,804,241)
Net loss including remeasurement of temporary equity to redemption value $ (743,027)     $ (522,364)     $ (1,961,507) $ (1,234,609)
Redeemable Class A [Member]                
Schedule Of Earnings Per Share Basic And Diluted [Line Items]                
Total number of shares 1,372,687     4,772,187     1,372,687 4,772,187
Net income (loss) $ (278,639)     $ (306,030)     $ (889,701) $ (875,826)
Deemed dividend for remeasurement of temporary equity to redemption value 610,118     1,380,072     2,399,140 5,804,241
Total net income (loss) allocated by class $ 331,479     $ 1,074,042     $ 1,509,439 $ 4,928,415
Weighted average shares outstanding 3,220,241     8,786,025     4,251,096 15,541,353
Weighted average shares outstanding 3,220,241     8,786,025     4,251,096 15,541,353
Basic net income (loss) per share $ 0.1     $ 0.12     $ 0.36 $ 0.32
diluted net income (loss) per share $ 0.1     $ 0.12     $ 0.36 $ 0.32
Class A Non Redeemable [Member]                
Schedule Of Earnings Per Share Basic And Diluted [Line Items]                
Total number of shares 4,743,749     4,743,749     4,743,749 4,743,749
Net income (loss) $ (464,388)     $ (201,572)     $ (1,071,806) $ (201,572)
Deemed dividend for remeasurement of temporary equity to redemption value 0     0     0 0
Total net income (loss) allocated by class $ (464,388)     $ (201,572)     $ (1,071,806) $ (201,572)
Weighted average shares outstanding 4,743,749     4,073,437     4,743,749 1,372,733
Weighted average shares outstanding 4,743,749     4,073,437     4,743,749 1,372,733
Basic net income (loss) per share $ (0.1)     $ (0.05)     $ (0.23) $ (0.15)
diluted net income (loss) per share $ (0.1)     $ (0.05)     $ (0.23) $ (0.15)
Class B Non Redeemable [Member]                
Schedule Of Earnings Per Share Basic And Diluted [Line Items]                
Total number of shares 1     1     1 1
Net income (loss) $ 0     $ (14,762)     $ 0 $ (157,211)
Deemed dividend for remeasurement of temporary equity to redemption value 0     0     0 0
Total net income (loss) allocated by class $ 0     $ (14,762)     $ 0 $ (157,211)
Weighted average shares outstanding 1     670,313     1 3,371,017
Weighted average shares outstanding 1     670,313     1 3,371,017
Basic net income (loss) per share $ (0.1)     $ (0.02)     $ (0.23) $ (0.05)
diluted net income (loss) per share $ (0.1)     $ (0.02)     $ (0.23) $ (0.05)
v3.24.3
Initial Public Offering - Additional Information (Detail) - $ / shares
 9 Months Ended 12 Months Ended
Jul. 13, 2023
Jan. 18, 2022
Sep. 30, 2024
Dec. 31, 2023
Initial Public Offering [Line Items]        
Shares issued, price per share   $ 10    
Class of warrant or right, exercise price of warrants or rights   $ 11.5 $ 11.5  
Purchase of ordinary share   1 1  
Common Class A [Member]        
Initial Public Offering [Line Items]        
Stock issued during period, shares 4,743,749   4,743,749 4,743,749
IPO [Member]        
Initial Public Offering [Line Items]        
Stock issued during period, shares   18,975,000 18,975,000  
Shares issued, price per share     $ 10  
IPO [Member] | U.S. government securities [Member]        
Initial Public Offering [Line Items]        
Shares issued, price per share     10.1  
IPO [Member] | Public Warrant [Member] | Common Class A [Member]        
Initial Public Offering [Line Items]        
Class of warrant or right, exercise price of warrants or rights     $ 11.5  
Purchase of ordinary share     1  
v3.24.3
Private Placement - Addtional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2022
Sep. 30, 2024
Jan. 18, 2022
Class of Warrant or Right [Line Items]      
Proceeds from issuance of warrants $ 7,942,500    
Purchase of ordinary share   1 1
Purchase of ordinary share, per share   $ 11.5 $ 11.5
Private Placement Warrants [Member] | Sponsor [Member]      
Class of Warrant or Right [Line Items]      
Class of warrant or right issued during period warrants 7,942,500    
Sale of stock, price per share $ 1 $ 1  
v3.24.3
Related Party Transactions - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Jul. 13, 2023
Aug. 31, 2021
Jul. 31, 2021
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Aug. 19, 2024
Jan. 18, 2024
Feb. 27, 2023
Dec. 31, 2022
General and administration expense       $ 30,000     $ 0 $ 90,000 $ 0          
Adjustment to additional paid in capital waiver of administrative service fees       30,000 $ 30,000 $ 30,000 $ 0 90,000 $ 0          
Commercial Paper [Member]                            
Principal amount                         $ 1,500,000  
Debt instrument interest rate                         4.75%  
Proceeds from related party debt               2,350,000   $ 1,230,000        
Interest payable       97,903       97,903   28,288        
Amended And Restated Working Capital Promissory Note [Member]                            
Principal amount                       $ 2,000,000    
Second Amended And Restated Working Capital Promissory Note [Member]                            
Principal amount                     $ 2,750,000      
Sponsor [Member]                            
Payable for office and administration support services per month                   10,000        
Founder Shares [Member] | Sponsor [Member] | Independent Director Nominee [Member]                            
Sponsor purchased shares   50,000                        
Unsecured Promissory Note [Member] | Sponsor [Member]                            
Principal amount     $ 300,000                      
Principal amount repayment date     Jan. 18, 2022                      
Principal amount repayment     $ 206,313                      
Promissory note overpayment                           $ 25,000
Working Capital Loans [Member]                            
Principal amount       0       0   $ 0        
Working capital loans convertible into warrants       $ 2,000,000       $ 2,000,000            
Working capital loans convertible into warrants, per warrant       $ 1       $ 1            
Common Class B [Member]                            
Sponsor purchased shares 4,743,749                          
Common Class B [Member] | Founder Shares [Member] | Sponsor [Member]                            
Sponsor purchased shares     4,743,750                      
Sponsor purchased shares , purchase price     $ 25,000                      
Aggregate of shares subject to forfeiture     618,750                      
Percentage of issued and outstanding shares after the initial public offering collectively held by initial stockholders     20.00%                      
Transfer, assign or sell any shares or warrants after completion of initial business combination, threshold trading days               20 days            
Transfer, assign or sell any shares or warrants after completion of initial business combination, threshold consecutive trading days               30 days            
Threshold period after business combination in which specified trading days within any specified trading day period commences               150 days            
v3.24.3
Shareholders' Deficit - Additional Information (Detail)
 9 Months Ended 12 Months Ended
Jul. 13, 2023
shares
Jan. 18, 2022
$ / shares
Sep. 30, 2024
USD ($)
Day
$ / shares
shares
Dec. 31, 2023
$ / shares
shares
Aug. 21, 2024
USD ($)
Aug. 18, 2024
shares
Jul. 11, 2023
USD ($)
shares
Jun. 29, 2023
USD ($)
shares
Class of Stock [Line Items]                
Preference shares, shares authorized     5,000,000 5,000,000        
Preference shares, par or stated value per share | $ / shares     $ 0.0001 $ 0.0001        
Preference shares, shares issued     0 0        
Preference shares, shares outstanding     0 0        
Common stock, par or stated value per share | $ / shares   $ 0.0001            
Common stock, Conversion basis   one right to acquire one-tenth of an Ordinary Share, and one-half of one redeemable warrant 20          
Private Placement Warrants [Member]                
Class of Stock [Line Items]                
Warrant non transferable Period     30 days          
Public Warrant [Member]                
Class of Stock [Line Items]                
Warrant exercise period condition one     12 months          
Warrant exercise period condition two     30 days          
Maximum thres hold period for filing registration statement after business combination | Day     20          
Maximum threshold period for registration statement to become effective after business combination | Day     60          
Class of warrant or right, redemption price of warrants or rights | $ / shares     $ 0.01          
Redemption period     30 days          
Warrant redemption condition minimum share price | $ / shares     $ 18          
Class of warrant or right, redemption of warrants or rights, threshold trading days     20 days          
Class of warrant or right, redemption of warrants or rights, threshold consecutive trading days     30 days          
Public Warrant [Member] | Event Triggering Warrant Redemption [Member]                
Class of Stock [Line Items]                
Share price | $ / shares     $ 9.2          
Percentage of equity proceeds from business combination as a percentage of total proceeds     60.00%          
Number of trading days     20 days          
Public Warrant [Member] | Event Triggering Warrant Redemption [Member] | Trigger Price One [Member]                
Class of Stock [Line Items]                
Redemption trigger price as a percentage of newly issued price     115.00%          
Class of warrants or rights redemption trigger price | $ / shares     $ 18          
Public Warrant [Member] | Event Triggering Warrant Redemption [Member] | Trigger Price Two [Member]                
Class of Stock [Line Items]                
Redemption trigger price as a percentage of newly issued price     180.00%          
Common Class A [Member]                
Class of Stock [Line Items]                
Common stock, shares authorized     500,000,000 500,000,000        
Common stock, par or stated value per share | $ / shares     $ 0.0001 $ 0.0001        
Common stock, voting rights     one          
Ordinary shares issued     4,743,749 4,743,749        
Ordinary shares outstanding     4,743,749 4,743,749        
Ordinary shares issued subject to possible redemption     1,372,687 4,772,187        
Ordinary shares outstanding subject to possible redemption     1,372,687 4,772,187   3,399,500 14,202,813 14,202,813
Stock issued during period, shares 4,743,749   4,743,749 4,743,749        
Common stock, Conversion basis   one            
Temporary equity, aggregate amount of redemption requirement | $     $ 149,486,187   $ 38,596,223   $ 149,486,187 $ 149,486,187
Common Class B [Member]                
Class of Stock [Line Items]                
Common stock, shares authorized     50,000,000 50,000,000        
Common stock, par or stated value per share | $ / shares     $ 0.0001 $ 0.0001        
Ordinary shares issued     1 1        
Ordinary shares outstanding     1 1        
Stock issued during period, shares 4,743,749              
v3.24.3
Commitments and Contingencies - Additional Information (Detail) - USD ($)
Jun. 21, 2024
Sep. 05, 2023
Apr. 10, 2023
Jan. 18, 2022
Nov. 28, 2023
Underwriting Agreement [Member]          
Payments for underwriting expense       $ 3,795,000  
Deferred fee ,Per shares       $ 0.35  
Deferred compensation liability, classified, noncurrent       $ 6,641,250  
Underwriting Discount Per Share       $ 0.2  
Capital Markets Advisory Agreement [Member]          
Advisory fee paid in cash $ 100,000        
Advisory paid in share for post business combination 75,000        
Over-Allotment Option [Member] | Underwriting Agreement [Member]          
Initial Public Offering purchase Limit       2,475,000  
Number Of Days Granted To Underwriters To Subscribe Shares Pursuant To Overallotment Option       45 days  
Common Class A [Member] | Sponsor [Member]          
Interse share transfer to be made         426,000
Common Class B [Member] | Sponsor [Member]          
Sale of stock, number of shares issued in transaction   75,000 75,000    
Sale of stock, price per share   $ 0.006 $ 0.006    
v3.24.3
Fair Value Measurements - Additional Information (Detail) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]    
Marketable securities held in trust account $ 15,779,835 $ 51,976,918
v3.24.3
Fair Value Measurements - Summary of the Fair Value Hierarchy the Company's Assets and Liabilities that were Accounted for at Fair Value on a Recurring Basis (Detail) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Fair value recurring [Member] | Treasury Trust Funds held in Trust Account [Member] | Level 1 [Member]    
Assets    
Treasury Trust Funds held in Trust Account $ 15,779,835 $ 51,976,918
v3.24.3
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - USD ($)
Nov. 14, 2024
Nov. 13, 2024
Oct. 15, 2024
Oct. 02, 2024
Subsequent Event [Line Items]        
Business combination $ 30,000   $ 30,000  
Second Amended And Restated Working Capital Promissory Note [Member]        
Subsequent Event [Line Items]        
Proceeds from Notes Payable   $ 200,000   $ 200,000
CSLM Acquisition (NASDAQ:CSLMW)
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