Company: MKLY
Filing Date: 2025-09-23
Form Type: 10-Q
Source: 0001213900-25-090712
Chunk: 28

Company: McKinley Acquisition Corp
Filing Date: 2025-09-23
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 pay principal
and interest on our debt, which will reduce the funds available for expenses, capital expenditures, acquisitions and other general corporate
purposes;

●limitations on our flexibility in planning for and reacting
to changes in our business and in the industry in which we operate;

●increased vulnerability to adverse changes in general economic,
industry and competitive conditions and adverse changes in government regulation; and

●limitations on our ability to borrow additional amounts for
expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages
compared to our competitors who have less debt.

As indicated in the financial statements, at June 30, 2025, we
had no cash and deferred offering costs of $59,701. Further, we expect to incur significant costs in the pursuit of our initial business
combination. We cannot assure you that our plans to raise capital or to complete our initial business combination will be successful.

Results of Operations and Known Trends or Future
Events

As of June 30, 2025, we have neither engaged in
any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary
to prepare for the Initial Public Offering that closed on August 13, 2025. Following the Initial Public Offering, we will not generate
any operating revenues until after completion of our initial business combination. We will generate non-operating income in the form of
interest income on cash and cash equivalents held in the Trust Account after the Initial Public Offering. After the Initial Public Offering,
we expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance),
as well as for due diligence expenses. We expect our expenses to increase substantially after the closing of our Initial Public Offering.

Liquidity and Capital Resources

Our liquidity needs have been satisfied prior
to the completion of the Initial Public Offering through $25,000 paid by the sponsor to cover certain of our offering and formation costs
in exchange for the issuance of the founder shares to our sponsor and up to $185,000 in loans from our sponsor.

Subsequent to the quarterly period covered by
this Quarterly Report, on August 13, 2025, the Company consummated the Initial Public Offering of 15,000,000 units at $10.00 per unit
(the “Public Units”), generating proceeds of $150,000,000. Each Public Unit consists of one Class A ordinary share (each,
a “