Company: FORL
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001213900-25-080962
Chunk: 26

Company: Four Leaf Acquisition Corp
Filing Date: 2025-08-27
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 include any adjustments that might result
from the outcome of these uncertainties.

Inflation
Reduction Act of 2022 

On
August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into federal law. The IRA provides for, among
other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain
U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on
the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally
1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise
tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value
of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the
Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the
abuse or avoidance of the excise tax.

On
December 27, 2022, the U.S. Department of the Treasury issued Notice 2023-2 (the “Notice”) as interim guidance until publication
of forthcoming proposed regulations on the excise tax. Although the guidance in the Notice does not constitute proposed or final Treasury
regulations, taxpayers may generally rely upon the guidance provided in the Notice until the issuance of the forthcoming proposed regulations.
Certain of the forthcoming proposed regulations (if issued) could, however, apply retroactively. The Notice generally provides that if
a covered corporation completely liquidates and dissolves, distributions in such complete liquidation and other distributions by such
covered corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not
subject to the excise tax. 

13

Because
any redemptions of our stock in connection with a business combination, extension vote or otherwise will occur after December 31, 2022,
the redemptions that take place after that date, including the redemption on June 18, 2024 in connection with the 2024 Special Meeting,
as well as the redemption on June 27, 2025 in