Company: LEGT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001829126-25-001098
Chunk: 60

Company: Legato Merger Corp. III
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1
Chunk 60
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 activities through November 30, 2024 were organizational activities, those necessary to prepare for the IPO and searching for a target business for our initial business combination. We do not expect to generate any operating revenues until after the completion of an initial business combination, at the earliest. We generate non-operating income in the form of interest income on marketable securities held in the Trust Account. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the year ended November 30, 2024 and 2023, we had a net income (loss) of $8,215,998 and ($17,632). For the year ended November 30, 2024, our net income consisted of interest income of $8,886,424 ($8,816,362 interest income from the trust account and $70,062 interest income from the operating account), offset by operating costs of $670,426. For the year ended November 30, 2023, our net loss consisted of operating costs of $17,632.

Liquidity and Capital Resources

As of November 30, 2024, the Company had $1,625,752 in cash and working capital of $1,852,705.

The Company’s liquidity needs prior to the consummation of the IPO were satisfied through the payment of $25,000 from the initial shareholder exchange for issuance of founder shares, and loan proceeds from Eric Rosenfeld, the Company’s Chief SPAC Officer, of $146,785 under promissory notes. The note balances were settled shortly after the consummation of the IPO. Subsequent to the consummation of the IPO, the Company’s liquidity has been satisfied through the net proceeds held outside of the Trust Account.

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The Company intends to use substantially all of the funds held in the Trust Account (excluding deferred underwriting commissions) to acquire a target business or businesses and to pay its expenses relating thereto. To the extent that the Company’s securities are used in whole or in part as consideration to affect the business combination, the remaining proceeds held in the Trust Account as well as any other net proceeds not expended will be used as working capital to finance the operations of the target business or businesses. In addition, in order to finance transaction costs in connection with a business combination, the Company’s insiders or their affiliates may, but are not obligated to, provide the Company with loans. As of November