Company: LEGT
Filing Date: 2025-07-02
Form Type: 10-Q
Source: 0001829126-25-004857
Chunk: 29

Company: Legato Merger Corp. III
Filing Date: 2025-07-02
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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5 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.

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For the three and six months ended May 31, 2025, we had a net income of $2,110,094 and $4,052,647, which consisted of interest income of $2,277,162 and $4,528,322 (for the three months ended May 31, 2025 $2,244,880 interest income from the trust account and $32,282 interest income from the operating account and for the six months ended May 31, 2025, $4,484,817 interest income from the trust account and $43,505), offset by operating expenses of $167,068 and $475,675, respectively.

For the three and six months ended May 31, 2024, we had a net income of $2,682,228 and $3,212,335, which consisted of interest income of $2,868,144 and $3,433,494 (for the three months ended May 31, 2025 $2,848,581 interest income from the trust account and $19,563 interest income from the operating account and for the six months ended May 31, 2025, $3,413,330 interest income from the trust account and $20,164), offset by operating expenses of $185,916 and $221,159, respectively.

Liquidity and Capital Resources

As of May 31, 2025, the Company had $1,290,847 in cash and working capital of $1,420,535.

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