Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 664

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1C
Chunk 664
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 period in the deferred tax assets and deferred tax liabilities. Deferred
tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all
of the deferred tax assets will not be realized. 

The Company
recognizes the tax benefits of uncertain tax positions only when the positions are “more likely than not” to be sustained
assuming examination by tax authorities and determined to be attributed to the Company. The determination of attribution, if any, applies
for each jurisdiction where the Company is subject to income taxes on the basis of laws and regulations of the jurisdiction. The application
of laws and regulations is subject to legal and factual interpretation, judgement, and uncertainty. Tax laws and regulations themselves
are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations, and court rulings.
Therefore, the actual liability of the various jurisdictions may be materially different from management’s estimate. As of December
31, 2024 and 2023, the Company has not recorded any amounts related to uncertain tax positions. 

Recent
Accounting Standards 

In August 2020, the FASB issued ASU 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This guidance changes how entities account
for convertible instruments and contracts in an entity’s own equity and simplifies the accounting for convertible instruments by
removing certain separation models for convertible instruments. This guidance also modifies the guidance on diluted earnings per share
calculations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December
15, 2023, but allows for early adoption. The Company adopted ASU 2020-06 on January 1, 2024 which had no impact on its financial statements.

In December 2023, the FASB issued ASU
2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” that addresses requests for improved income
tax disclosures from investors that use the financial statements to make capital allocation decisions. Public entities must adopt
the new guidance for fiscal years beginning after December 15, 2024. The amendments in this ASU must be applied on a retrospective
basis to all prior periods presented in the