Company: WLACW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010349
Chunk: 17

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 in full and borrowings under the IPO Promissory Note are no longer
available.

Administrative
Services Agreement

The
Company entered into an agreement with an affiliate of the Sponsor, commencing on November 8, 2024, through the earlier of consummation
of the initial Business Combination and the Company’s liquidation to pay an aggregate of $10,000 per month for office space, utilities
and secretarial and administrative support. For the three months ended March 31, 2025, the Company incurred and paid $30,000 in fees
for these services.

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of
the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working
Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans. In the event
that a Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay
the Working Capital Loans, but no proceeds from the Trust Account would be used to repay the Working Capital Loans. 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. As of March 31, 2025 and December 31, 2024, no such Working Capital Loans were outstanding.

Note
6 — Commitments and Contingencies

Risks
and Uncertainties

The
Company’s results of operations and its ability to complete an initial Business Combination may be adversely affected by various
factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond the Company’s control.
The Company’s results of operations and its ability to consummate an initial Business Combination could be impacted by, among other
things, downturns in the financial markets or in economic conditions, increases in oil prices, inflation, fluctuations in interest rates,
increases in tariffs, supply chain disruptions, declines in consumer confidence and spending, public health considerations, and geopolitical
instability,