Financial Performance - For the three months ended May 31, 2025, the company reported a net income of $2,110,094, consisting of interest income of $2,277,162 and operating expenses of $167,068[106]. - For the six months ended May 31, 2025, the company reported a net income of $4,052,647, with interest income totaling $4,528,322 and operating expenses of $475,675[106]. - The company generated non-operating income from interest on marketable securities held in the Trust Account, with no operating revenues expected until after the Business Combination[105]. Cash and Working Capital - As of May 31, 2025, the company had $1,290,847 in cash and working capital of $1,420,535[108]. - As of May 31, 2025, there were no amounts outstanding under any Working Capital Loans[126]. Business Operations - The company has not engaged in any operations or generated revenues to date, focusing instead on organizational activities and searching for a target business[105]. - The company has until February 8, 2026, to consummate an initial Business Combination, with a potential extension to May 8, 2026, if certain conditions are met[112]. Expenses and Liabilities - The company incurred administrative service fees of $60,000 and $120,000 for the three and six months ended May 31, 2025, respectively[121]. - The company has no long-term debt, capital lease obligations, or long-term liabilities as of May 31, 2025[114]. Shareholder Equity - The company issued 5,031,250 Founder Shares for an aggregate purchase price of $25,000, with a potential forfeiture of up to 656,250 shares based on the over-allotment option[119]. - Ordinary shares subject to possible redemption include 20,125,000 Public Shares, classified as temporary equity due to uncertain future events affecting redemption rights[129]. - The Company recognizes changes in redemption value and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period[130]. Earnings Per Share - 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[131]. - The Company has not considered the effect of warrants sold in the Initial Public Offering and Private Placement in the calculation of diluted net income per share, as their contingency had not been met yet[131]. Regulatory Classification - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[132].
Legato Merger Corp. III(LEGT) - 2025 Q2 - Quarterly Report