Company: MKLY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109976
Chunk: 53

Company: McKinley Acquisition Corp
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 53
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 government treasury obligations with a maturity of
185 days or less, or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act
which invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be temporary
and for the sole purpose of facilitating the intended business combination. To mitigate the 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.

We intend to use substantially all of the funds
held in the Trust Account, including any amounts representing interest earned on the Trust Account (excluding contingent, deferred underwriting
commissions). We may withdraw interest for permitted withdrawals, including the payment of income or franchise (but not excise) taxes.
Our annual income tax obligations will depend on the amount of interest and other income earned on the amounts held in the Trust Account.
We expect the interest earned on the amount in the Trust Account will be sufficient to pay our taxes. To the extent that our equity or
debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the Trust
Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue
our growth strategies.

Upon the completion of an initial business combination,
three percent (3.0%) of amounts remaining in the Trust Account, after redemption payments and other permitted withdrawals, and excluding
amounts related to any non-redemption agreements, forward purchase agreements or similar agreements, shall be paid to the underwriters
as contingent, deferred underwriting commissions.

Prior to the completion of our initial business
combination, we will have available to us funds that are held outside the Trust Account. We will use these funds to primarily 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.