Company: MLAC
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108244
Chunk: 17

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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740, “Income Taxes,” which prescribes a recognition threshold and a measurement attribute
for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s
management determined that the Cayman Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest
and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2025 and December 31, 2024, there were
no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under
review that could result in significant payments, accruals or material deviation from its position.

There is currently no taxation imposed on income
by the government of the Cayman Islands. In accordance with Cayman Islands federal income tax regulations, income taxes are not levied
on the Company. Consequently, income taxes are not reflected in the Company’s condensed financial statements. The Company’s
management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Net Income (Loss) per Ordinary Share

The Company complies with accounting and disclosure
requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of ordinary shares, which are referred
to as Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of ordinary
shares. This presentation assumes a business combination as the most likely outcome. Net income (loss) per ordinary share is calculated
by dividing the net income (loss) by the weighted average ordinary shares outstanding for the respective period.

The calculation of diluted net income (loss) per
ordinary share does not consider the effect of the rights issued in connection with the Initial Public Offering and the Private Placement
to purchase an aggregate of 7,666,667 Class A ordinary shares in the calculation of diluted income (loss) per ordinary share, because
their exercise is contingent upon future events. As a result, diluted net income (loss) per ordinary share is the same as basic net income
(loss) per ordinary share for the three and nine months ended September 30, 2025, for the three months ended September 30, 2024 and for
the period from June 14, 2024 (inception) through September 30,