Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 23

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 will not
be used to pay for the excise tax that may be levied on the Company in connection with such redemptions. The Company further confirms
that it will not utilize any funds from the trust account to pay any such excise tax.

On June
18, 2024, the Company’s stockholders redeemed 2,752,307 Class A common stock shares for a total of $30,194,356. The Company evaluated
the status and probability of the excise taxes becoming payable in relation to these redemptions under the guidance in ASC 450, Contingencies,
and determined that a contingent liability should be calculated and recorded. For the year ended December 31, 2024, the Company incurred
$301,944 excise tax liability related to the June 18, 2024 redemptions. No such redemptions occurred during the three months ended
March 31, 2025 or 2024. The excise tax liability totaled $301,944 as of both March 31, 2025 and December 31, 2024.

Franchise
and Income Tax Withdrawals

During the
year ended December 31, 2024, the Company withdrew $1,031,029 of interest and dividend income earned in the Trust Account for payment
of the Company’s franchise and income tax liabilities. As of March 31, 2025 and December 31, 2024, $126,150 and $99,006, respectively,
of the funds were inadvertently used for the payments of general operating expenses. The Company is expected to replenish these amounts
via a Working Capital Loan from its Sponsor or another similar type of financing.

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Basis
of Presentation 

The accompanying
unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and
Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared
in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting.
Accordingly, they do not include all of the information and footnotes necessary for a complete presentation of financial position, results
of operations, or cash flows. In the opinion of management, the accompanying