Company: MKLY
Filing Date: 2025-09-23
Form Type: 10-Q
Source: 0001213900-25-090712
Chunk: 31

Company: McKinley Acquisition Corp
Filing Date: 2025-09-23
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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funds following this offering in order to meet the expenditures required for operating our business prior to our initial business combination.
However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial
business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business
prior to our initial business combination. In order to fund working capital deficiencies or finance transaction costs in connection with
an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our officers and directors may, but
are not obligated to, loan us funds as may be required. If we complete our initial business combination, we would repay such loaned amounts.
In the event that our initial business combination does not close, we may use amounts held outside of the Trust Account to repay such
loaned amounts but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible
into private placement units of the post business combination entity at a price of $10.00 per unit at the option of the lender. Such units
would be identical to the private placement units. The terms of such loans, if any, have not been determined and no written agreements
exist with respect to such loans. Prior to the completion of our initial business combination, we do not expect to seek loans from parties
other than our sponsor or an affiliate of our sponsor as we do not believe third parties will be willing to loan such funds and provide
a waiver against any and all rights to seek access to funds in our Trust Account.

We expect our primary liquidity requirements during
that period to include approximately $1,000,000 for legal, accounting and other third party expenses attendant to the search for target
businesses and to the due diligence investigation, structuring and negotiation of a business combination, $465,000 for legal and accounting
fees related to SEC reporting obligations, $180,000 for infrastructure, technology and administrative expenses, $175,000 for D&O liability
insurance premiums and $580,000 for working capital and reserves.

These amounts are estimates and may differ materially
from our actual expenses. In addition, we could use amounts held outside of the Trust Account to pay commitment fees for financing, fees
to consultants to assist us with our search for a target business or as a down payment or to fund a “no-shop” provision (a
provision designed to keep target businesses from “