Company: MLAC
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001213900-25-073711
Chunk: 31

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 we become obligated to redeem a significant number
of our public shares upon completion of our Business Combination, in which case we may issue additional securities or incur debt in connection
with such Business Combination.

Off-Balance Sheet Financing Arrangements

We have no obligations, assets or liabilities,
which would be considered off-balance sheet arrangements as of June 30, 2025. We do not participate in transactions that create relationships
with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established
for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements,
established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

Contractual Obligations

We do not have any long-term debt, capital lease
obligations, operating lease obligations or long-term liabilities, other than an agreement to pay the Chairman and Chief Executive Officer
and the President and Chief Financial Officer, a total of up to $20,000 per month for their services as executive officers and directors
of the Company. For the three and six months ended June 30, 2025, the Company incurred an expense of $60,000 and $120,000 of fees for
these services, respectively. For the period from June 14, 2024 (inception) through June 30, 2024, no fees were incurred for these services.

The underwriters are entitled to a deferred underwriting
fee of $0.35 per Unit, or $8,050,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held
in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting
agreement.

16

Critical Accounting Estimates

The preparation of condensed financial statements
and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities
at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ
from those estimates. We have identified the following critical accounting policies.

Class A Ordinary Shares Subject to Possible
Redemption

The Public Shares contain a redemption feature
which allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there is a shareholder