Financial Performance - As of May 31, 2024, the company reported a net income of $2,682,228 for the three months and $3,212,335 for the six months, primarily from interest income of $2,868,144 and $3,433,494 respectively[95]. - The company incurred operating costs of $185,916 for the three months and $221,159 for the six months ended May 31, 2024[95]. - Diluted net income per share is the same as basic net income per share for the period due to unmet contingencies[122]. Cash and Working Capital - The company had $1,953,950 in cash and a working capital balance of $2,247,074 as of May 31, 2024[97]. - The company has no long-term debt or significant contractual obligations as of May 31, 2024[102]. - The company has not had any off-balance sheet arrangements as of May 31, 2024[101]. Business Operations - The company has not engaged in any operations or generated revenues to date, with expectations to generate operating revenues only after completing its initial Business Combination[94]. - The company plans to utilize substantially all funds in the Trust Account for acquiring target businesses and related expenses[99]. - The company may require additional capital to pursue potential transactions, with no assurance that new financing will be available on acceptable terms[100]. Shareholder Information - The company issued 5,031,250 Founder Shares for a total purchase price of $25,000, with an agreement that holders will collectively own 20% of the company's shares post-IPO[108]. Accounting Policies - The company adopted ASU 2020-06 and ASU 2016-13, which did not materially affect its financial position or results of operations[104][106]. - The Company has not considered the effect of warrants sold in the Initial Public Offering and Private Placement for the calculation of diluted net income per share[122]. - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[123].
Legato Merger Corp. III(LEGT) - 2024 Q2 - Quarterly Report