Company: WLACW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010349
Chunk: 70

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 of the gross proceeds of the Initial Public Offering
held in the Trust Account, including proceeds from the sale of the Option Units) upon the completion of the initial Business Combination
(the “Deferred Fee”), subject to the terms of the Underwriting Agreement, but such Deferred Fee shall be based partly on
amounts remaining in the Trust Account following all properly submitted shareholder redemptions in connection with the consummation of
the initial Business Combination.

Critical
Accounting Estimates and Policies

We
prepare our audited financial statements in accordance with GAAP, which requires Management to make estimates that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates, as well as the reported
amounts of revenues and expenses for the reporting periods. To the extent that there are material differences between these estimates
and actual results, our financial condition or results of operations would be affected. We base our estimates on our own historical experience
and other assumptions that we believe are reasonable taking into account our circumstances and future expectations based on the available
information. We evaluate these estimates on an ongoing basis.

We
consider an accounting estimate to be critical if (i) the accounting estimate requires us to make assumptions about matters that were
highly uncertain at the time when the accounting estimate was made; and (ii) changes in the estimate that are reasonably likely to occur
from period to period or use of different estimates that we reasonably could have used in the current period, would have a material amount
on our financial condition or results of operations. There are items in our financial statements that require estimation, but are not
deemed to be critical, as defined above.

For
a detailed discussion of our significant accounting policies and related judgements, see “Note 2– Summary of Significant
Accounting Policies Basis of Presentation” in the notes to the financial statements contained elsewhere in this Report.

Class
A Ordinary Shares Subject to Possible Redemption

The
Public Shares contain a redemption feature that allows for the redemption of such Public Shares in connection with our liquidation, or
if there is a shareholder vote or tender offer in connection with our initial Business Combination. In accordance with FASB ASC Topic
480-10-S99, “Distinguishing Liabilities from Equity,” we classify Public Shares subject to redemption outside of permanent
equity as the redemption provisions are not solely within our control. We recognize changes in redemption value immediately as they occur
and adjust the carrying value of redeemable shares to equal the redemption value