Company: LEGT
Filing Date: 2025-04-11
Form Type: 10-Q
Source: 0001829126-25-002582
Chunk: 11

Company: Legato Merger Corp. III
Filing Date: 2025-04-11
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 Public Offering, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable ordinary shares resulted in charges against additional paid-in capital and accumulated deficit.

As of February 28, 2025, the ordinary shares reflected on the condensed balance sheets are reconciled in the following table:

    Schedule of reconciliation of ordinary shares subject to possible redemption reflected in the balance sheets

    As ofFebruary 28,2025

    Gross proceeds
     
    $
    201,250,000

    Less:

    Fair value of Public Warrants at issuance

    (1,308,125
    )
  
    Ordinary share issuance costs

    (10,159,799
    )
  
    Plus:

    Accretion of carrying value to redemption value

    11,932,673

    Ordinary shares subject to possible redemption, February 29, 2024
     
    $
    201,714,749

    Plus:

    Accretion of carrying value to redemption value

    2,848,581

    Ordinary shares subject to possible redemption, May 31, 2024
     
    $
    204,563,330

    Plus:

    Accretion of carrying value to redemption value

    2,842,357

    Ordinary shares subject to possible redemption, August 31, 2024
     
    $
    207,405,687

    Plus:

    Accretion of carrying value to redemption value

    2,560,675

    Ordinary shares subject to possible redemption, November 30, 2024
     
    $
    209,966,362

    Plus:

    Accretion of carrying value to redemption value

    2,239,938

    Ordinary shares subject to possible redemption, February 28, 2025
     
    $
    212,206,300

    9

Offering Costs

The Company complies with the requirements of the
ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Deferred offering costs consist principally
of professional and registration fees that are related to the Initial Public Offering. Financial Accounting Standards Board (“FASB”)
ASC 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible
debt into its equity and debt components. The Company applies