Company: WLACW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010349
Chunk: 68

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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 other acquisitions and pursue our growth
strategies.

At
March 31, 2025, we had cash of $1,235,372 held outside of the Trust Account. We use the funds held outside the Trust Account primarily
to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices,
plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material
agreements of prospective target businesses, structure, negotiate and complete a Business Combination.

On
July 18, 2024, our Sponsor agreed to loan us an aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public
Offering pursuant to the IPO 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