Company: WLACW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001493152-25-011863
Chunk: 15

Company: Willow Lane Acquisition Corp.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 of the Cayman Islands. In accordance with Cayman Islands federal income
tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the accompanying condensed
financial statements. Management does not expect that the total amount of unrecognized tax benefits will materially change over the next
twelve months.

Warrant
Instruments

The
Company accounted for the 6,325,000 Public Warrants and the 5,145,722 Private Placement Warrants issued in connection with the Initial
Public Offering and the Private Placement in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”
(“ASC 815”). Accordingly, the Company evaluated and classified the Warrant instruments under equity treatment at their assigned
values.

Class
A Ordinary Shares Subject to Possible Redemption

The
Public Shares contain a redemption feature that allows for the redemption of such Public Shares in connection with the Company’s
liquidation, or if there is a shareholder vote or tender offer in connection with the Company’s initial Business Combination. In
accordance with section 480-10-S99 of FASB ASC Topic 480 “Distinguishing Liabilities from Equity,” the Company classifies
Public Shares subject to redemption outside of permanent deficit as the redemption provisions are not solely within the control of the
Company. The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of redeemable
shares to equal the redemption value at the end of each reporting period. 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
shares will result in charges against additional paid-in capital (to the extent available) and an accumulated deficit. Accordingly, as
of June 30, 2025 and December 31, 2024, Class A Ordinary Shares subject to possible redemption are presented at redemption value as temporary
equity, outside of the shareholders’ deficit section of the accompanying condensed balance sheets. As of June 30, 2025 and December
31, 2024, the Class A Ordinary Shares subject to redemption reflected in the accompanying condensed balance sheets are reconciled in
the following table:

 Schedule of Class A Ordinary Shares Subject to Redemption

    Gross proceeds 
    $126,500,000 
  
    Less: 

    Proceeds allocated to Public Warrants 
     (822,250)