Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 100

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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Results of Operations

Since the IPO, the Company’s
activity has been limited to the search for a prospective initial business combination and activities to complete the business combination
with Xiaoyu Dida. The Company will not generate any operating revenues until the closing
and completion of an initial business combination, at the earliest.

For the three months
ended March 31, 2025, the Company had a net loss of $59,229, which was primarily related to $314,815 of formation and operating costs
and $60,896 of income tax expense, partially offset by $316,482 of dividend and interest income earned in the Trust Account. For the three
months ended March 31, 2024, the Company had net income of $130,602, which was primarily related to $757,940 of dividend and interest
income earned in the Trust Account, offset by $452,417 of formation and operating costs and $174,921 of income tax expense.

Formation and operating
costs decreased during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 primarily due to the
decreases in accounting and legal expenses. The dividend and interest income decreased for the three months ended March 31, 2025 as compared
to the three months ended March 31, 2024 due to the redemptions of the Trust Account that occurred on June 18, 2024. Income tax expense
for the three months ended March 31, 2025 decreased in line with the decrease in dividend and interest income earned in the Trust Account.

32

Commitments and Contractual
Obligations

Registration Rights

The holders of the Founder
Shares, Private Placement Warrants, warrants that may be issued upon conversion of up to $2,000,000 of Working Capital Loans, any shares
of Class A common stock issuable upon the exercise of the Private Placement Warrants and Class A common stock issuable upon conversion
of the Founder Shares, are entitled to registration rights pursuant to a registration rights agreement signed at the effective date of
the IPO, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class
A common stock). The holders of the majority of these securities are entitled to make up to three demands, excluding short form demands
that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect