Company: WLACW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010349
Chunk: 34

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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, 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 at the end of each reporting period. Immediately upon
the closing of the Initial Public Offering, we recognized the accretion from initial book value to redemption amount value. The change
in the carrying value of redeemable shares resulted in charges against additional paid-in capital (to the extent available) and accumulated
deficit.

Warrant
Liabilities

We
accounted for the 6,325,000 Public Warrants and the 5,145,722 Private Placement Warrants in accordance with the guidance contained in
FASB ASC Topic 815, “Derivatives and Hedging.” Accordingly, we evaluated and classified the warrant instruments under equity
treatment at their assigned values.

Net Income (Loss) per Ordinary Share

We
comply with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” We have two classes of Ordinary
Shares, Class A Ordinary Shares and Class B Ordinary Shares. Income and losses are shared pro rata between the two classes of Ordinary
Shares. Net income per Ordinary Share is computed by dividing net income by the weighted average number of Ordinary Shares outstanding
for the period. Accretion associated with the redeemable Ordinary Shares is excluded from income per Ordinary Share as the redemption
value approximates fair value.

Recent
Accounting Pronouncements

Management
does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material
effect on the financial statements and notes thereto contained elsewhere in this Report.

17

Item
3. Quantitative and Qualitative Disclosures About Market Risk.

We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise
required under this Item.

Item
4. Controls and Procedures.

Evaluation
of Disclosure Controls and Procedures

Disclosure
controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports
filed or submitted under the Exchange Act is recorded, processed, summarized and reported