Company: MLAC
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108244
Chunk: 15

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 offer in connection with the Company’s initial Business Combination. In accordance with ASC 480-10-S99, the Company
classifies Public Shares subject to redemption outside of permanent equity as the redemption provisions are not solely within the control
of the Company. The Company recognizes changes in redemption value immediately as they occur and will 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,
the Company recognized the accretion from initial book value to redemption value. The change in the carrying value of redeemable shares
will result in charges against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of September
30, 2025 and December 31, 2024, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary
equity, outside of the shareholders’ deficit section of the Company’s condensed balance sheets.

As of September 30, 2025 and December 31, 2024,
the Class A ordinary shares subject to possible redemption reflected in the condensed balance sheets are reconciled in the following
table:

    Gross proceeds 
    $230,000,000 
  
    Less: 

    Proceeds allocated to Public Share Rights 
     (2,070,000)
  
    Class A ordinary shares issuance costs 
     (13,210,471)
  
    Plus: 

    Accretion for Class A ordinary shares to redemption amount 
     16,924,324 
  
    Class A ordinary shares subject to possible redemption, December 31, 2024 
    $231,643,853 
  
    Plus: 

    Accretion for Class A ordinary shares to redemption amount 
     7,258,722 
  
    Class A ordinary shares subject to possible redemption, September 30, 2025 
    $238,902,575 

Fair Value of Financial Instruments

The fair value of the Company’s assets
and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates
the carrying amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature.

Fair Value Measurements

Fair value is defined as the price that would
be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement
date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs