Legato Merger Corp. III Reports Decrease in Net Income for Quarter and Nine Months Ended August 31, 2025

Legato Merger Corp. III has reported its financial results for the three and nine months ended August 31, 2025, revealing a net income of $1,999,385 for the quarter and $6,052,032 for the nine-month period. This represents a decrease from the previous year, where the company reported net incomes of $2,573,492 and $5,785,828 for the same periods in 2024. The decline in net income is attributed to a reduction in interest income from investments held in the Trust Account, which totaled $2,260,109 for the quarter and $6,744,927 for the nine months, compared to $2,842,357 and $6,255,687 in the prior year. General and administrative costs also increased, amounting to $269,064 for the quarter and $744,740 for the nine months, up from $284,948 and $506,106, respectively.

As of August 31, 2025, Legato Merger Corp. III reported total assets of $217,966,099, a slight increase from $211,914,067 at the end of the previous fiscal period. The company holds $216,806,288 in investments within its Trust Account, which is primarily invested in U.S. government securities. The cash balance outside the Trust Account decreased to $1,078,756 from $1,625,752. The company’s liabilities remained stable at $7,043,750, with a shareholders’ deficit of $5,788,940, reflecting an increase from $5,096,045 in the prior period.

In terms of operational developments, Legato Merger Corp. III has not yet commenced any business operations, as its activities have been focused on organizational tasks and searching for a target business for a potential merger. The company has not reported any significant changes in customer counts or user statistics, as it is still in the early stages of its business model. The company’s management has indicated that it intends to utilize the funds held in the Trust Account to acquire a target business and cover related expenses.

Looking ahead, Legato Merger Corp. III has until February 8, 2026, to complete its initial business combination, with a possible extension to May 8, 2026, if certain conditions are met. The company has expressed uncertainty regarding its ability to consummate a business combination within this timeframe, which raises substantial doubt about its ability to continue as a going concern. Management plans to address this concern by completing a business combination before the mandatory liquidation date. The company has also indicated that it may need to take additional measures to conserve liquidity if it is unable to raise further capital.