Company: MKLY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109976
Chunk: 65

Company: McKinley Acquisition Corp
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 65
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 affected, or are reasonably likely to materially affect, our internal control over financial reporting.

27

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

To the knowledge of our management, there is no
material litigation, arbitration or governmental proceeding currently pending against us, any of our officers or directors in their capacity
as such or against any of our property.

Item 1A. Risk Factors.

Factors that could cause our actual results to
differ materially from those in this Quarterly Report are any of the risks described in our Final Prospectus, filed with the SEC on August
12, 2025. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition.
Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

As of the date of this Quarterly Report on Form
10-Q, there have been no material changes to the risk factors disclosed in our Final Prospectus. We may disclose changes to such factors
or disclose additional factors from time to time in our future filings with the SEC.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On August 13, 2025, we consummated our Initial
Public Offering of 15,000,000 Units at $10.00 per Unit, generating gross proceeds to the Company of $150,000,000. Clear Street and Brookline
acted as the underwriters. The securities sold in the Initial Public Offering were registered under the Securities Act on registration
statement on Form S-1 (No. 333-288439). The SEC declared the registration statement effective on August 11, 2025.

Simultaneously with the consummation of the Initial
Public Offering, on August 13, 2025, we consummated the private sale of an aggregate of 465,000 Private Placement Units to the Sponsor
and the underwriters at a purchase price of $10.00 per unit, generating gross proceeds of $4,650,000. The Private Placement Units are
identical to the Units sold in the Initial Public Offering, except as otherwise disclosed in the Registration Statement. No underwriting
discounts or commissions were paid with respect to such sale. The issuance of the Private Placement Units was made pursuant to the exemption
from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.

We incurred transaction costs amounting to $