Company: WLACW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021938
Chunk: 40

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 risk that we might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases
the longer that we hold investments in the Trust Account, we may, at any time, (based on our Management Team’s ongoing assessment
of all factors related to our potential status under the Investment Company Act) instruct the trustee to liquidate the investments held
in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest-bearing demand deposit account at a
bank.

As
of September 30, 2025 and December 31, 2024, we had cash held outside of the Trust Account of $561,174 and $1,368,608. 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, and structure, negotiate and complete a
Business Combination.

Our
liquidity needs through September 30, 2025 have been satisfied through (i) a contribution of $25,000 from the Sponsor in exchange for
the issuance of our Founder Shares, (ii) a loan pursuant to the IPO Promissory Note, and (iii) the net proceeds from the consummation
of the Initial Public Offering and Private Placement held outside the Trust Account.

Promissory
Note

Prior
to the closing of our Initial Public Offering, our Sponsor agreed to loan us an aggregate of up to $300,000 under the IPO Promissory
Note. Such loans and advances were non-interest bearing and were payable on the earlier of December 31, 2024, or the completion of
our Initial Public Offering. The loan of $103,576 was fully repaid upon the consummation of our Initial Public Offering on November
18, 2024. As of December 31, 2024, the IPO Promissory Note had been paid in full and borrowings under the
IPO Promissory Note were no longer available.

23

Working
Capital Loans

In
order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor, or certain
of our officers and directors or their affiliates may, but are not obligated to, loan us Working Capital Loans, as may be required. If
we complete a Business Combination, we will