Company: MLAC
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108244
Chunk: 62

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 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.

 8

MOUNTAIN LAKE ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited)

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 lowest level input that is significant to the fair value measurement.

Offering Costs

The Company complies with the requirements of
the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Offering costs consist principally
of professional and registration fees that are related to the Initial Public Offering. FASB ASC 470-20, “Debt with Conversion and
Other Options,” addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components.
The Company applies this guidance to allocate Initial Public Offering proceeds from the Units between Class A ordinary shares and rights,
using the residual method by allocating Initial Public Offering proceeds first to assigned value of the rights and then to the Class A
ordinary shares. Offering costs allocated to Public Shares were charged to temporary equity, and offering costs allocated to share rights
included in the Public and Private Placement Units were charged to shareholders’ equity (deficit) as the rights, after management’s
evaluation, were accounted for under equity treatment.

Income Taxes

The Company complies with the accounting and
reporting requirements of ASC Topic 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