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

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 25
---
 out of the extended transition period and comply with the requirements that apply
to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended
transition period which means that when a standard is issued or revised and it has different application dates for public or private companies,
the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised
standard. This may make comparison of the Company’s unaudited condensed financial statements with another public company which is
neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period, difficult
or impossible because of the potential differences in accounting standards used. 

Business
Combination Costs

Costs incurred in relation to a potential Business
Combination may include legal, accounting, and other expenses. Any such costs are expensed as incurred. The Company incurred approximately
$50,000 of Business Combination costs for the three months ended March 31, 2025.

Net Income
(Loss) Per Share 

The Company
complies with accounting and disclosure requirements of ASC 260, Earnings Per Share (“ASC 260”). Net income (loss)
per share is computed by dividing net income (loss) by the weighted average number of outstanding Class A common stock and Class B common
stock during the periods presented. 

The Company’s
unaudited condensed statements of operations include a presentation of net income (loss) per share subject to redemption in a manner similar
to the two-class method of income (loss) per share. With respect to the accretion of the Class A common stock subject to possible redemption
and consistent with ASC 480-10-S99-3A, the Company deemed the fair value of the Class A common stock subject to possible redemption to
approximate the contractual redemption value and as such, the accretion has no impact on the calculation of net income (loss) per share.

14

The Company’s
Public Warrants and Private Placement Warrants totaling 5,200,000 and 5,576,900, respectively, including from the conversion of the Working
Capital Loans (see Notes 4 and 6) could, potentially, be exercised or converted into Class A common stock and then share in the earnings
of the Company. However, these warrants were excluded when calculating diluted income (loss) per share as the contingencies associated
with the warrants had