Company: LEGT
Filing Date: 2025-04-11
Form Type: 10-Q
Source: 0001829126-25-002582
Chunk: 38

Company: Legato Merger Corp. III
Filing Date: 2025-04-11
Form: 10-Q
Item: Part I, Item 2
Chunk 38
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, reorganization or other similar business combination, one or more businesses or entities (a “Business Combination”). We intend to effectuate our Business Combination using cash from the proceeds of the Initial Public Offering and the sale of the Private Units, our capital shares, debt or a combination of cash, shares and debt.

We expect to continue to incur significant costs in connection with closing our initial Business Combination. We cannot assure you that our plans to raise capital or to complete our initial Business Combination will be successful.

Results of Operations

We have neither engaged in any operations nor generated any revenues to date. Our only activities through February 28, 2025 were organizational activities, those necessary to prepare for the Initial Public Offering and searching for a target business for our initial Business Combination and entering into the Merger Agreement. We do not expect to generate any operating revenues until after the completion of our Business Combination, at the earliest. We generate non-operating income in the form of interest income on marketable securities held in the Trust Account. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the three months ended February 28, 2025, we had a net income of $1,942,553, which consisted of interest income of $2,251,160 ($2,239,937 interest income from the trust account and $11,223 interest income from the operating account), offset by operating expenses of $308,607. For the three months ended February 29, 2024, we had a net income of $2,039,570, which consisted of interest income of $565,350, a reversal of expenses of $1,509,375 and operating costs of $35,242.

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Liquidity and Capital Resources

As of February 28, 2025, the Company had $1,377,000 in cash and working capital of $1,555,321.

The Company’s liquidity needs prior to the consummation of the Initial Public Offering were satisfied through the payment of $25,000 from the initial shareholder exchange for issuance of Founder Shares (as defined in Note 5), and loan proceeds from Eric Rosenfeld, the Company’s Chief SPAC Officer, of $146,785 under promissory notes (as described in Note 5). The note balances were settled shortly after the consummation of the Initial Public Offering. Subsequent to the consummation of the Initial Public