Company: LEGT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001829126-25-001098
Chunk: 574

Company: Legato Merger Corp. III
Filing Date: 2025-02-19
Form: 10-K
Item: Item 5
Chunk 574
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 sold in the Initial Public Offering and Private Placement to purchase an aggregate of 10,340,313 shares in the calculation of diluted earnings per share, since their contingency had not been met yet. Accretion associated with the ordinary shares are excluded from net income per share as the redemption value approximates fair value. As a result, diluted net income per ordinary share is the same as basic net income per ordinary share for the periods presented.

The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars):

    Schedule of calculation of basic and diluted net income per ordinary share

    For the Year Ended November 30, 2024

    For the Year Ended November 30, 2023

    Public Shares (basic and diluted)

    Founder Shares (basic and diluted)

    Public Shares (basic and diluted)

    Founder Shares (basic and diluted)

    Basic and diluted net income per ordinary share

    Numerator:

    Allocation of net income as adjusted
     
    $
    6,585,895

    $
    1,630,103

    $
    -

    $
    (17,632
    )
  
    Denominator:

    Basic and diluted weighted average shares outstanding

    20,680,625

    5,118,750

    -

    2,789,063

    Basic and diluted net income per ordinary share
     
    $
    0.32

    $
    0.32

    $
    -

    $
    (0.01
    )

      F-12 

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

Fair Value of Financial Instruments

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

The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The fair