Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 777

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 2
Chunk 777
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During the
years ended December 31, 2024 and 2023, the Company withdrew $1,031,029 and $0, respectively, of investment income from the Trust Account
to pay its tax obligations. 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 Sponsor or another similar type of financing.

Deferred
Credit

During the
year ended December 31, 2023, the Company received a $191,250 unconditional and non-refundable reimbursement for certain general and administrative
expenses incurred by the Company from Xiaoyu Dida as part of a non-binding letter of intent, which as of December 31, 2024 and December
31, 2023 had not been cancelled. This amount was recorded as a deferred credit associated with a potential business combination in the
accompanying balance sheets as of December 31, 2024 and December 31, 2023.

Fair
Value of Financial Instruments 

The fair
value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, Fair Value Measurement,
approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature. 

Concentration
of Credit Risk 

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution,
which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on these accounts.

F-17

Share-Based
Payment Arrangements 

The Company
accounts for stock awards in accordance with ASC 718, which requires that all equity awards be accounted for at their fair value. Fair
value is measured on the grant date and is equal to the underlying value of the stock. 

Costs equal
to these fair values are recognized ratably over the requisite service period based on the number of awards that are expected to vest,
or in the period of grant for awards that vest immediately and have no future service condition. For awards that vest over time, cumulative
adjustments in later periods are recorded to the extent actual forfeitures differ from the Company’s initial estimates; previously
recognized compensation cost is reversed if the service or performance conditions are not satisfied, and the award is forfeited. 

Common
Stock Subject to Possible Redemption 

The Company
accounts for its