Company: LEGT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001829126-25-001098
Chunk: 511

Company: Legato Merger Corp. III
Filing Date: 2025-02-19
Form: 10-K
Item: Item 4
Chunk 511
---
 with the Accounting Standards Codification (“ASC”) 480-10-S99-3A, “Classification and Measurement of Redeemable Securities”, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. The Company classified all of the Public Shares as redeemable. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable ordinary shares resulted in charges against additional paid-in capital and accumulated deficit.

As of November 30, 2024, the ordinary shares reflected on the  balance sheets are reconciled in the following table:

    Schedule of reconciliation of ordinary shares subject to possible redemption reflected in the balance sheets

    As ofNovember 30,2024

    Gross proceeds
     
    $
    201,250,000

    Less:

    Fair value of Public Warrants at issuance

    (1,308,125
    )
  
    Ordinary share issuance costs

    (10,159,799
    )
  
    Plus:

    Accretion of carrying value to redemption value

    11,932,673

    Ordinary shares subject to possible redemption, February 29, 2024
     
    $
    201,714,749

    Plus:

    Accretion of carrying value to redemption value

    2,848,581

    Ordinary shares subject to possible redemption, May 31, 2024
     
    $
    204,563,330

    Accretion of carrying value to redemption value

    2,842,357

    Ordinary shares subject to possible redemption, August 31, 2024
     
    $
    207,405,687

    Accretion of carrying value to redemption value

    2,560,675

    Ordinary shares subject to possible redemption, November 30, 2024
     
    $
    209,966,362

Offering Costs

The Company complies with the requirements of the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Deferred offering costs consist principally of professional and registration fees that are related to the Initial Public Offering. Financial Accounting Standards Board (“FASB”) ASC