Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 419

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 419
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or repurchases we consummate in the same taxable year, (ii) the structure of any business combination and the taxable year in which it
occurs (including redemptions in connection with the Special Meeting), (iii) the nature and amount of any equity issuances, in connection
with a business combination or otherwise, issued within the same taxable year, (iv) whether we completely liquidate and dissolve within
the taxable year of such redemptions, and (v) legal uncertainties regarding how the excise tax applies to transactions like the Business
Combination (and, if applicable, a complete liquidation and dissolution of the Company) and the content of final and proposed regulations
and further guidance from the Treasury. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination
and in our ability to complete a Business Combination. The proceeds placed in the trust account and the interest earned thereon 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 current 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 year ended December 31, 2023. The excise tax liability totaled $301,944 and $0 as of December 31, 2024 and 2023, respectively.

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 December 31, 2024, $99,006 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