Company: LEGT
Filing Date: 2025-10-07
Form Type: 10-Q
Source: 0001829126-25-007942
Chunk: 14

Company: Legato Merger Corp. III
Filing Date: 2025-10-07
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of August 31, 2025 and November 30, 2024. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position.

There is currently no taxation imposed on income by the government of the Cayman Islands. In accordance with Cayman Islands’ income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s condensed financial statements.

Net Income per Ordinary Share

The Company complies with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income per ordinary share is computed by dividing net income applicable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period (the public and private shares, inclusive of the full exercise of the over-allotment option). The Company has not considered the effect of the warrants sold in the Initial Public Offering and Private Placement to purchase an aggregate of 10,340,313 shares in the calculation of diluted earnings per share, since their contingency had not been met yet. Accretion associated with the ordinary shares are excluded from net income per share as the redemption value approximates fair value. As a result, diluted net income per ordinary share is the same as basic net income per ordinary share for the periods presented.

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The following tables reflects the calculation of basic and diluted net income per ordinary share (in dollars):

For the Three and Nine Months Ended August 31, 2025

    Schedule of calculation of basic and diluted net income per ordinary share

    For the Three Months Ended August 31, 2025

    For the Nine Months Ended August 31, 2025

    Public Shares (basic and diluted)

    Founder Shares (basic and diluted)

    Public Shares (basic and diluted)

    Founder Shares (basic and diluted)

    Basic and diluted net income per ordinary share

    Numerator:

    Allocation of net income as adjusted
     
    $
    1,602,695

    $
    396,690

    $
    4,851,273

    $
    1,200,759

    Denominator:

    Basic and diluted weighted average shares outstanding

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