Company: LEGT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001829126-25-001098
Chunk: 389

Company: Legato Merger Corp. III
Filing Date: 2025-02-19
Form: 10-K
Item: Item 2
Chunk 389
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10 

Investments Held in Trust Account

The Company’s portfolio of investments is comprised solely of 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, or a combination thereof. The Company’s investments held in the Trust Account are classified as trading securities. Trading securities are presented on the  balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities are included in investment income on Trust and cash accounts in the accompanying  statements of operations. The estimated fair values of investments held in the Trust Account are determined using available market information.

Shares Subject to Possible Redemption

As discussed in Note 1, all of the 20,125,000 Public Shares sold as parts of the Units in the Initial Public Offering contain a redemption feature. In accordance with the Accounting Standards Codification (“ASC”) 480-10-S99-3A, “Classification and Measurement of Redeemable Securities”, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. The Company classified all of the Public Shares as redeemable. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable ordinary shares resulted in charges against additional paid-in capital and accumulated deficit.

As of November 30, 2024, the ordinary shares reflected on the  balance sheets are reconciled in the following table:

    Schedule of reconciliation of ordinary shares subject to possible redemption reflected in the balance sheets

    As ofNovember 30,2024

    Gross proceeds
     
    $
    201,250,000

    Less:

    Fair value of Public Warrants at issuance

    (1,308,125
    )
  
    Ordinary share issuance costs

    (10,159,799
    )
  
    Plus:

    Accretion of carrying value to redemption value

    11,932,673

    Ordinary shares subject to possible redemption, February 29, 2024
     
    $
    201,714,749

    Plus:

    Accretion