Mountain Lake Acquisition Corp. Fair Value Disclosure
NOTE 8 — FAIR VALUE MEASUREMENTS
At December 31, 2025, assets held in the Trust Account were comprised of $1,121 in cash and $241,229,451 in U.S. Treasury securities. During the year ended December 31, 2025, the Company did not withdraw any interest income from the Trust Account.
| Gross | |||||||||||||||
| Amortized | Holding | ||||||||||||||
| Held To Maturity | Cost | Gain | Fair Value | ||||||||||||
| December 31, 2025 | U.S. Treasury Securities (Matured on January 8, 2026) | $ | 241,229,451 | $ | 58,588 | $ | 241,288,039 | ||||||||
At December 31, 2024, assets held in the Trust Account were comprised of $593 in cash and $231,643,260 in U.S. Treasury securities. During the period from June 14, 2014 (inception) through December 31, 2024, the Company did not withdraw any interest income from the Trust Account.
| Gross | |||||||||||||||
| Amortized | Holding | ||||||||||||||
| Held To Maturity | Cost | Loss | Fair Value | ||||||||||||
| December 31, 2024 | U.S. Treasury Securities (Matured on June 12, 2025) | $ | 231,643,260 | $ | (128,995 | ) | $ | 231,514,265 | |||||||
The Public Share Rights 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 Share Rights:
December 16, (Initial Public Offering) | ||||
| Trade price of Unit | $ | 10.94 | ||
| Risk-free rate | 4.17 | % | ||
| Market adjustment(1) | 9.2 | % | ||
| Fair value per share right | $ | 0.09 | ||
| (1) | Market adjustment reflects additional factors not fully captured by low volatility selection, which may include likelihood of Business Combination occurring, market perception of lack of available or suitable targets, or possible post-acquisition decline of stock price prior to beginning of the exercise period. The adjustment is determined by comparing traded warrant prices to simulated model outputs. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Mar 19, 2025 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.