Company: WLACW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010349
Chunk: 79

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 79
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 temporary and for the sole purpose of facilitating the
intended Business Combination. To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment
Company Act, which risk increases the longer that we hold investments in the Trust Account, we may, at any time (based on our Management
Team’s ongoing assessment of all factors related to our potential status under the Investment Company Act), instruct the trustee
to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest-bearing
demand deposit account at a bank.

For
the three months ended March 31, 2025, net cash used in operating activities was $133,237. Net income of $1,232,751, which includes
interest earned on marketable securities held in Trust of $1,363,977 and changes in operating assets and liabilities, which used
$2,011 of cash from operating activities.

At
March 31, 2025, we had cash and marketable securities held in the Trust Account of $128,527,398 (including $1,647,898 of interest income).
We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the
Trust Account, which interest shall be net of taxes payable, if any, and excluding deferred underwriting commissions, to complete our
Business Combination. We may withdraw interest from the Trust Account to pay taxes, if any. To the extent that our share capital or debt
is used, in whole or in part, as consideration to complete a Business Combination, the remaining proceeds held in the Trust Account will
be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth
strategies.

At
March 31, 2025, we had cash of $1,235,372 held outside of the Trust Account. We use the funds held outside the Trust Account primarily
to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices,
plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material
agreements of prospective target businesses, structure, negotiate and complete a Business Combination.

On
July 18, 2024, our Sponsor agreed to loan us an aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public
Offering pursuant to the IPO