Company: WLACW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010349
Chunk: 80

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 80
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 Promissory Note. The loan was non-interest-bearing, unsecured and due at the earlier of December 31, 2024
or the closing of the Initial Public Offering. As of November 12, 2024, we had borrowed $103,576 under the IPO Promissory Note. Subsequently,
on November 18, 2024, we paid the IPO Promissory Note balance of $103,576. As of March 31, 2025 and December 31, 2024, the IPO Promissory
Note had been paid in full and borrowings under the IPO Promissory Note are no longer available.

In
order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, our Sponsor or an
affiliate of our Sponsor or certain of our officers and directors may, but are not obligated to, loan us Working Capital Loans as may
be required. If we complete a Business Combination, we may repay such Working Capital Loans out of the proceeds of the Trust Account
released to us. In the event that a Business Combination does not close, we may use a portion of the working capital held outside the
Trust Account to repay such Working Capital Loans, but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000
of such Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant
at the option of the lender. The warrants would be identical to the Private Placement Warrants. Other than as set forth above, the terms
of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such Working Capital
Loans. There were no Working Capital Loans outstanding as of March 31, 2025 and December 31, 2024.

We
do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business. However,
if our estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination
are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial
Business Combination. Moreover, we may need to obtain additional financing either to complete our Business Combination or because we
become obligated to redeem a significant number of our Public Shares upon completion of our Business Combination, in which case we may
issue additional securities or incur debt in connection with