Company: WLACW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021938
Chunk: 45

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 and complexity. As of September 30, 2025, we did not have any critical accounting estimates to be disclosed.

25

Class
A Ordinary Shares Subject to Possible Redemption

We
account for the Class A Ordinary Shares subject to possible redemption in accordance with the guidance in FASB ASC Topic 480, “Distinguishing
Liabilities from Equity”. Class A Ordinary Shares subject to mandatory redemption (if any) are classified as liability instruments
and measured at fair value. Conditionally redeemable Class A Ordinary Shares (including Class A Ordinary Shares that feature redemption
rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within
our control) are classified as temporary equity. At all other times, Class A Ordinary Shares are classified as shareholders’ equity.
All of the Public Shares feature certain redemption rights that are considered to be outside of our control and subject to the occurrence
of uncertain future events. Accordingly, Class A Ordinary Shares subject to possible redemption are presented at redemption value as
temporary equity, outside of the shareholders’ equity section of our condensed balance sheets included in this Report under Item
1. “Financial Statements”.

Net
Income (Loss) Per Ordinary Share

We
comply with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income (loss) per
Ordinary Share is computed by dividing net income (loss) applicable to shareholders by the weighted average number of Ordinary Shares
outstanding for the applicable periods. We apply the two-class method in calculating earnings per Ordinary Share and allocate net income
(loss) pro rata to Class A Ordinary Shares subject to possible redemption, nonredeemable Class A Ordinary Shares and Class B Ordinary
Shares. Accretion associated with the redeemable Class A Ordinary Shares is excluded from earnings per share as the redemption value
is not in excess of the fair value.

Warrant
Liabilities

We
accounted for the 6,325,000 Public Warrants and the 5,145,722 Private Placement Warrants in accordance with the guidance contained in
FASB ASC Topic 815, “Derivatives and Hedging.” Accordingly, we evaluated and classified the warrant instruments under equity
treatment at their assigned values.

Recent
Accounting Standards

Management
does not believe that there are any recently issued, but not yet effective, accounting standards, which, if currently adopted, would
have a material effect on the unaudited condensed financial