Company: LEGT
Filing Date: 2025-10-07
Form Type: 10-Q
Source: 0001829126-25-007942
Chunk: 12

Company: Legato Merger Corp. III
Filing Date: 2025-10-07
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 values of investments held in the Trust Account are determined using available market information.

Ordinary Shares Subject to Possible Redemption

As discussed in Note 1, all of the 20,125,000 Public Shares sold as parts of the Units in the Initial Public Offering contain a redemption feature. In accordance with the Accounting Standards Codification (“ASC”) 480-10-S99-3A, “Classification and Measurement of Redeemable Securities”, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. The Company classified all of the Public Shares as redeemable. Immediately upon the closing of the Initial 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.

    9

As of August 31, 2025 and November 30, 2024, the ordinary shares reflected on the condensed balance sheet are reconciled in the following table:

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

    As ofAugust 31,2025

    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: