Company: MLAC
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001213900-25-025105
Chunk: 551

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 2
Chunk 551
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 ASC 480-10-S99, the Company
classifies Public Shares subject to redemption outside of permanent equity 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 value. The change in the carrying value of redeemable shares
will result in charges against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of 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 Company’s balance sheet.

As of December 31, 2024, the Class A ordinary
shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:

    Gross proceeds 
    $230,000,000 
  
    Less: 

    Proceeds allocated to Public Share Rights 
     (2,070,000)
  
    Class A ordinary shares issuance costs 
     (13,210,471)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     16,924,324 
  
    Class A ordinary shares subject to possible redemption, December 31, 2024 
    $231,643,853 

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying
amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Fair Value Measurements

 Fair value is defined as the price that would be received
for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement date.
U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●Level 1, defined as observable
inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●Level 2, defined