Company: WLACW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021938
Chunk: 31

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 31
---
:

    Level
    1:
    Quoted
    prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions
    for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level
    2:
    Observable
    inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities
    and quoted prices for identical assets or liabilities in markets that are not active.

    Level
    3:
    Unobservable
    inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The
following table presents information about the Company’s assets that are measured at fair value as of September 30, 2025 and December
31, 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

Schedule of Fair Value Hierarchy of the Valuation inputs

    Level  
    September 30, 2025 
  
    Assets: 

    Investments in Trust Account 
     1  
    $131,283,264 

    Level  
    December 31, 2024 
  
    Assets: 

    Investments in Trust Account 
     1  
    $127,163,421 

    18

WILLOW
LANE ACQUISITION CORP.

NOTES
TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

(Unaudited)

The
Company accounted for the 6,325,000 Public Warrants underlying the Units issued in connection with the Initial Public Offering and the
5,145,722 Private Placement Warrants issued in the Private Placement in accordance with the guidance contained in ASC 815. Accordingly,
the Company evaluated and classified the warrant instruments under equity treatment at their assigned values.

The
fair value of Public Warrants was determined using a Monte Carlo Simulation Model. The Public Warrants have been classified within shareholders’
deficit and will not require remeasurement after issuance. The following table presents the quantitative information regarding market
assumptions used in the valuation of the Public Warrants:

 Schedule of Market Assumptions used in the Valuation of Public Warrants

    November 12, 2024 
  
    Estimated share price 
    $9.93 
  
    Exercise price