Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 542

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1B
Chunk 542
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-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 common stock subject to possible redemption in accordance with the guidance in ASC 480, Distinguishing Liabilities
from Equity (“ASC 480”). Class A common stock subject to mandatory redemption (if any) are classified as a liability instrument
and are measured at fair value. Conditionally redeemable common stock (including common stock that feature redemption rights that are
either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s
control) are classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s
Class A common stock sold as part of its IPO features certain redemption rights that are considered to be outside of the Company’s
control and subject to the occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption are
classified as temporary equity and are accreted from the initial carrying amount to the redemption value over the period from the date
of issuance to the earliest redemption date of the instrument on a straight-line basis. Subsequent to the IPO date, the accretion also
includes the dividend and interest income earned in the Trust Account in excess of income and franchise taxes as well as required deposits
to extend the life of the Company, which currently occur on a monthly basis. 

The redemption
values as