Company: MKLY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109976
Chunk: 32

Company: McKinley Acquisition Corp
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 change in fair value of the over-allotment option liability from August 13, 2025, the date of the Company’s Initial Public Offering, to August 15, 2025, the date the underwriters’ over-allotment option was exercised in full, was de minimis. The following table presents the change in fair value of Level 3 recurring fair value measurements:      Level 3   Balance as of March 27, 2025 (inception)  $—    Change in fair value   —    Balance as of March 31, 2025   —    Over-allotment option liability   149,000    Change in fair value   —    Exercise of over-allotment option   (149,000)   Balance as of September 30, 2025  $—    Non-recurring Fair Value Measurements The following table presents information about the Company’s non-recurring fair value measurements on August 13, 2025 in connection with the consummation of the Company’s Initial Public Offering, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:      Level   August 13, 2025   Liabilities:          Over-allotment option liability  3   $149,000    Equity:           Fair value of Public Rights for Class A ordinary shares subject to possible redemption allocation  3   $3,446,879    Class B ordinary shares (per share)  3   $4.51    Non-managing sponsor interest in Bonus Shares  3   $51,725    Underwriter interest in Bonus Shares  3   $2,606    19  MCKINLEY ACQUISITION CORPORATION NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 The over-allotment option was accounted for as a liability in accordance with ASC 815-40 and was presented within liabilities on the balance sheet. The over-allotment liability is measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of over-allotment liability in the statement of operations.  A Black-Scholes model was used to value the over-allotment option. The Company estimates the volatility of