Company: MKLY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109976
Chunk: 51

Company: McKinley Acquisition Corp
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 51
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 payment of all principal and accrued interest, if any, if the debt security is payable on demand;

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our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding;

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using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for expenses, capital expenditures, acquisitions and other general corporate purposes;

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

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

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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 September 30,
2025, we had $1,883,395 of cash and $173,451,679 of amounts held in the Trust Account. 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 September 30, 2025, we have neither engaged
in any business operations nor generated any revenues to date. Our only activities since inception have been organizational activities,
those necessary to prepare for the Initial Public Offering that closed on August 13, 2025, and following the Initial Public Offering,
seeking a target business to acquire. 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. 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 in connection with identifying a target business to acquire.

Liquidity and Capital Resources

Our liquidity needs were 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.

22

On August 13, 2025, the Company consummated the
Initial Public Offering of