Company: WLACW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021938
Chunk: 15

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 cash and no cash equivalents as of September 30, 2025 and December 31, 2024, respectively.

Investments
Held in Trust Account

As
of September 30, 2025 and December 31, 2024, the assets held in the Trust Account, amounting to $131,283,264
and $127,163,421,
respectively, were held in money market funds investing in U.S. government securities, within the meaning set forth in Section 2(a)(16)
of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government
securities and generally have a readily determinable fair value, or a combination thereof. Such investments are classified as trading
securities which are presented at fair value. Gains and losses resulting from the change in fair value of these securities are included
in income from investments held in the Trust Account in the accompanying unaudited condensed statements of operations. The estimated
fair values of investments held in the Trust Account are determined using available market information.

    10

WILLOW
LANE ACQUISITION CORP.

NOTES
TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

(Unaudited)

Offering
Costs

The
Company complies with the requirements of the FASB ASC Topic 340-10-S99, “Accounting for Offering Costs”, and SEC Staff Accounting
Bulletin Topic 5A “Expenses of Offering.” Offering costs consist principally of professional and registration fees that are
related to the Initial Public Offering. FASB ASC Topic 470-20, “Debt with Conversion and Other Options,” addresses the allocation
of proceeds from the issuance of convertible debt into its equity and debt components. The Company applied this guidance to allocate
Initial Public Offering proceeds from the Units between Public Shares and Public Warrants, using the residual method by allocating Initial
Public Offering proceeds first to assigned value of the Public Warrants and then to the Public Shares. Offering costs allocated to the
Public Shares were charged to temporary equity. Offering costs allocated to the Public Warrants and Private Placement Warrants were charged
to shareholders’ deficit. After Management’s evaluation, the Warrants were accounted for under equity treatment.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,