Company: MLAC
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001213900-25-025105
Chunk: 487

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 1C
Chunk 487
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 redemption are presented at redemption value as temporary equity, outside of the
shareholders’ deficit section of the Company’s balance sheet.

As of December 31, 2024, the Class A ordinary
shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:

    Gross proceeds 
    $230,000,000 
  
    Less: 

    Proceeds allocated to Public Share Rights 
     (2,070,000)
  
    Class A ordinary shares issuance costs 
     (13,210,471)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     16,924,324 
  
    Class A ordinary shares subject to possible redemption, December 31, 2024 
    $231,643,853 

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying
amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Fair Value Measurements

 Fair value is defined as the price that would be received
for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement date.
U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●Level 1, defined as observable
inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●Level 2, defined as inputs
other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments
in active markets or quoted prices for identical or similar instruments in markets that are not active; and

●Level 3, defined as unobservable
inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived
from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

In some circumstances, the inputs used to measure
fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is
categorized in its entirety in the fair value hierarchy based on the