Company: WLACW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010349
Chunk: 82

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 82
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 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 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