Company: LEGT
Filing Date: 2025-10-07
Form Type: 10-Q
Source: 0001829126-25-007942
Chunk: 28

Company: Legato Merger Corp. III
Filing Date: 2025-10-07
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 of $2,573,492 and $5,785,828, which consisted of interest income of $2,858,440, (for the three months ended August 31, 2024 $2,842,357 interest income from the trust account and $16,083 interest income from the operating account) and for the nine months ended August 31, 2024 $6,291,934, ($6,255,687 interest income from the trust account and $36,247 interest income from the operating account), offset by operating costs of $284,948 and $506,106, respectively.

Liquidity and Capital Resources

As of August 31, 2025, the Company had $1,078,756 in cash and working capital of $1,159,811.

The Company’s liquidity needs prior to the consummation of the Initial Public Offering were satisfied through the payment of $25,000 from the initial shareholder exchange for issuance of Founder Shares (as defined in Note 5), and loan proceeds from Eric Rosenfeld, the Company’s Chief SPAC Officer, of $146,785 under promissory notes (as described in Note 5). The note balances were settled shortly after the consummation of the Initial Public Offering. Subsequent to the consummation of the Initial Public Offering, the Company’s liquidity has been satisfied through the net proceeds held outside of the Trust Account.

The Company intends to use substantially all of the funds held in the Trust Account (excluding deferred underwriting commissions) to acquire a target business or businesses and to pay its expenses relating thereto. To the extent that the Company’s securities are used in whole or in part as consideration to affect the Business Combination, the remaining proceeds held in the Trust Account as well as any other net proceeds not expended will be used as working capital to finance the operations of the target business or businesses. In addition, in order to finance transaction costs in connection with a Business Combination, the Insiders or their affiliates may, but are not obligated to, provide the Company Working Capital Loans (as defined in Note 4). As of August 31, 2025 and November 30, 2024, there were no amounts outstanding under any Working Capital Loan.

If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, suspending the pursuit of a potential transaction. The Company cannot provide any assurance that new financing will be