Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 1910

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 9C
Chunk 1910
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less basis,” the Company’s management will consider, among other factors, the cash position, the
number of warrants that are outstanding and the dilutive effect on the Company’s stockholders of issuing the maximum number of shares
of Class A common stock issuable upon the exercise of the warrants. In such event, each holder would pay the exercise price by surrendering
the warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number
of shares of Class A common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and
the “fair market value” (defined below) by (y) the fair market value. The “fair market value” for this purpose
shall mean the average reported last sale price of the Class A common stock for the 10 trading days ending on the third day prior to the
date on which the notice of redemption is sent to the holders of warrants. 

F-23

NOTE
8 - STOCK-BASED COMPENSATION 

Class
B Common Stock Share Transfers 

In August
2022, the Sponsor transferred 25,000 shares of Class B common stock to each of the two independent directors as compensation for their
service on the Company’s Board of Directors. If the director was no longer serving as a director of the Company at the time of the
IPO, is removed from office as director, or voluntarily resigns his position with the Company before a merger, capital stock exchange,
asset acquisition, stock purchase, reorganization or similar business combination involving the Company (“the Triggering Event”),
all of such director’s shares shall be returned to Sponsor. Further, considering that in case the business combination does not
occur these awards will be forfeited, it was deemed that the above terms result in the vesting provision whereby the share awards would
vest only upon the consummation of a business combination or change of control event. As a result, any compensation expense in relation
to these grants will be recognized at the Triggering Event. Therefore, the Company recorded no compensation expense for the period from
March 3, 2022 (inception) through December 31, 2024. 

The fair
value of the Founder Shares on the grant date was approximately $0.81 per share. The valuation performed by the Company determined the
fair value of the shares on the date of grant by applying a discount based upon (a) the probability of a successful