Financial Performance - For the three months ended February 28, 2025, the company reported a net income of $1,942,553, primarily from interest income of $2,251,160, offset by operating expenses of $308,607[103]. - The company incurred $60,000 in administrative service fees for the three months ended February 28, 2025, compared to $15,172 for the same period in 2024[117]. - Net income per share is calculated by dividing net income applicable to ordinary shareholders by the weighted average number of shares outstanding, with diluted net income per share being the same as basic net income per share for the period[127]. - The company has not included the effect of warrants for 10,340,313 shares in the diluted net income per share calculation as the contingency had not been met[127]. Cash and Working Capital - As of February 28, 2025, the company had $1,377,000 in cash and working capital of $1,555,321[104]. - As of February 28, 2025, there were no outstanding Working Capital Loans[122]. Operations and Revenue Generation - The company has not engaged in any operations or generated revenues to date, with non-operating income derived solely from interest on marketable securities held in the Trust Account[102]. - The company intends to use substantially all funds in the Trust Account to acquire a target business and cover related expenses[106]. Business Combination and Liquidation - The company has until February 8, 2026, to complete its initial Business Combination, or face mandatory liquidation[108]. Shareholder Equity - The company issued 5,031,250 Founder Shares for a total purchase price of $25,000, with no shares subject to forfeiture after the underwriters exercised the over-allotment option[115]. - The company has 20,125,000 ordinary shares subject to possible redemption, classified as temporary equity[125]. - Changes in redemption value are recognized and the carrying value of redeemable ordinary shares is adjusted to equal the redemption value at the end of each reporting period[126]. Investments - The company's investments held in the Trust Account consist solely of U.S. government securities or money market funds investing in U.S. government securities[123]. Accounting Standards - The company adopted ASU 2020-06 on November 6, 2023, which did not impact its financial position or results of operations[112]. Reporting Classification - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[128].
Legato Merger Corp. III(LEGT) - 2025 Q1 - Quarterly Report