The capital structure is highly volatile, with equity deteriorating to a negative $6.4M in 2026Q1, reflecting structural erosion as the entity consumes resources without achieving a definitive business combination.
| Total Current Assets | 519.3K | 872.26K | 1.85M | 19.87K |
| Cash & Short-Term Investments | - | - | - | - |
| Cash Only | - | - | - | - |
| Short-Term Investments | - | - | - | - |
| Accounts Receivable | - | - | - | - |
| Days Sales Outstanding | - | - | - | - |
| Inventory | - | - | - | - |
| Days Inventory Outstanding | - | - | - | - |
| Other Current Assets | 0 | 0 | 0 | 0 |
| Total Non-Current Assets | 220.89M | 218.94M | 210.06M | 3.74K |
| Property, Plant & Equipment | 0 | 0 | 0 | 0 |
| Fixed Asset Turnover | - | - | - | - |
| Goodwill | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 |
| Long-Term Investments | 871.18M | 218.94M | 210.06M | 0 |
| Other Non-Current Assets | - | - | - | - |
| Total Assets | 221.41M | 219.81M | 211.91M | 23.61K |
| Asset Turnover | 0.00x | - | - | - |
| Asset Growth % | 15.65% | 3.73% | 897612.73% | - |
| Total Current Liabilities | 0 | 0 | 0 | 15.74K |
| Accounts Payable | 0 | 0 | 0 | 0 |
| Days Payables Outstanding | - | - | - | - |
| Short-Term Debt | 0 | 0 | 0 | 12.5K |
| Deferred Revenue (Current) | 0 | - | - | - |
| Other Current Liabilities | 0 | 0 | 0 | 3.24K |
| Current Ratio | - | - | - | 1.26x |
| Quick Ratio | - | - | - | 1.26x |
| Cash Conversion Cycle | - | - | - | - |
| Total Non-Current Liabilities | 0 | 7.04M | 7.04M | 0 |
| Long-Term Debt | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 0 | - | - | - |
| Deferred Tax Liabilities | 0 | - | - | - |
| Other Non-Current Liabilities | - | - | - | - |
| Total Liabilities | 7.04M | 7.04M | 7.04M | 15.74K |
| Total Debt | 0 | 0 | 0 | 12.5K |
| Net Debt | -519.3K | -839.84K | -1.63M | 12.5K |
| Debt / Equity | -0.00x | - | - | 1.59x |
| Debt / EBITDA | -0.00x | - | - | - |
| Net Debt / EBITDA | 0.48x | - | - | - |
| Interest Coverage | - | - | - | - |
| Total Equity | -6.43M | 212.77M | 204.87M | 7.87K |
| Equity Growth % | -113.68% | 3.86% | 2603742.36% | - |
| Book Value per Share | -0.31 | 10.29 | 9.91 | 0.00 |
| Total Shareholders' Equity | -6.43M | 212.77M | 204.87M | 7.87K |
| Common Stock | 442.21M | 218.85M | 209.97M | 512 |
| Retained Earnings | -6.43M | -6.08M | -5.1M | -17.63K |
| Treasury Stock | 0 | 0 | 0 | 0 |
| Accumulated OCI | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
Liquidation and regulatory compliance
As reported in financial statements, LEGT's equity position has deteriorated from $204.9M in 2024Q4 to a negative $6.4M by 2026Q1, reflecting the structural erosion of shareholder value as the entity continues to consume resources without securing a definitive business combination to transition into an operating company.
The shift into negative equity suggests that the accounting treatment of liabilities is outpacing the value of assets held in trust. Investors should monitor this trend closely, as it may indicate that the entity is nearing a critical juncture where the cost of maintaining the shell structure exceeds the remaining economic utility of the vehicle.
Based on LEGT's reported figures, cash and equivalents have steadily declined from $2.1M in 2024Q1 to just $519.3K in 2026Q1, indicating a tightening liquidity buffer that constrains management's ability to fund ongoing administrative and regulatory expenses required to finalize a potential merger transaction.
The consistent quarterly decline in cash reserves suggests that the sponsor's at-risk capital is being depleted at an accelerating rate. This trend warrants further investigation into whether additional sponsor funding will be required to avoid a forced liquidation before a suitable acquisition target can be identified.
According to recent SEC filings, LEGT's equity has experienced extreme volatility, swinging from $212.8M in 2025Q4 to a negative $6.4M in 2026Q1, a fluctuation that appears primarily driven by non-cash revaluations of warrant liabilities rather than any fundamental change in the underlying asset base.
This extreme variance suggests that the equity line item is currently an unreliable indicator of the company's true economic health. Analysts should interpret these figures with caution, as they reflect accounting adjustments for derivative instruments rather than the actual capital available for deployment in a business combination.
As indicated by the provided balance sheet data, the presence of significant liabilities relative to the total asset base suggests that the headline equity figures are heavily distorted by the fair-value accounting of warrant liabilities, which may mask the true operational status of the shell vehicle.
The disconnect between the stable asset base and the erratic equity balance implies that the company's financial position is highly sensitive to market-based valuation changes of its own securities. This distortion makes it difficult to assess the actual solvency of the entity without stripping out these non-operating accounting entries.
Quick answers to the most common questions about buying LEGT stock.
As of 2025, Legato Merger Corp. III (LEGT) had total assets of $219.8M including $0.9M in current assets.
Legato Merger Corp. III (LEGT) carries total debt of $0.0M. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Legato Merger Corp. III (LEGT) has total shareholders' equity (book value) of $212.8M ($10.29 book value per share). Book value represents the net worth of the company belonging to common stock holders.