CSLM Acquisition Corp. Reports $19.8 Million Net Loss and Merger with Fusemachines Inc.

CSLM Acquisition Corp. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2025. The company recorded a net loss of $19.8 million for the three months ended September 30, 2025, compared to a loss of $132,909 in the same period the previous year. For the nine months ending September 30, 2025, the net loss totaled $22.1 million, a stark contrast to a net income of $437,633 for the same period in 2024. The losses were primarily driven by a $17.6 million financing expense and a $1.3 million loss on the change in fair value of a forward purchase agreement liability.

The company’s financial position has deteriorated, with total current assets decreasing to $12.4 million as of September 30, 2025, down from $16.2 million at the end of 2024. Current liabilities surged to $43.9 million, compared to $10.8 million at the end of the previous fiscal year, largely due to increased promissory notes and accrued expenses. The working capital deficit ballooned to $37.2 million, raising substantial doubt about the company's ability to continue as a going concern.

In terms of operational developments, CSLM has been actively pursuing a business combination, which culminated in a merger with Fusemachines Inc. on October 22, 2025. This merger was approved by shareholders at a meeting held on July 28, 2025, where 5.2 million shares were represented. The merger involved the exchange of Fusemachines' shares for $200 million in newly issued shares of CSLM's common stock. Following the merger, CSLM's Class A ordinary shares subject to redemption decreased to 901,955 from 1,372,687, reflecting shareholder redemptions during the approval process.

The company has also made strategic moves to extend its timeline for completing a business combination. Following shareholder approvals, CSLM has extended its deadline to complete a business combination to December 18, 2025, by depositing funds into its trust account. This extension allows the company additional time to finalize its merger and pursue growth opportunities. However, the company continues to face risks associated with market conditions, including inflation and geopolitical instability, which could impact its future operations and financial performance.

Looking ahead, CSLM's management plans to address its liquidity challenges through related party loans and the successful completion of its business combination. However, there is no assurance that these plans will be successful or that the company will be able to raise the necessary capital to sustain its operations. The company’s ability to navigate these challenges will be critical as it seeks to stabilize its financial position and execute its strategic objectives.