Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 41

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 41
---
-related items.

The Company’s
ETR was 3,653.1% and 57.3% for the three months ended March 31, 2025 and 2024, respectively. The Company’s general and administrative
expenses are generally considered start-up costs and are not currently deductible for federal income tax purposes.

The difference
between the effective tax rates of 3,653.0% and 57.3% and the U.S. federal statutory rate of 21% for the three months ended March 31,
2025 and 2024, respectively, was primarily due to the change in the valuation allowance (as a result of dividend and interest income earned
on the Company’s Trust Account), and the permanent differences arising from business combination costs and interest and penalties
on income taxes.

The Company
has no uncertain tax positions related to federal and state income taxes. The federal tax returns for the Company since inception remains
open for examination.

When the
Company is assessed interest or penalties it will be classified in the financial statements as tax expense. For the three months ended
March 31, 2024, the Company incurred $22,012 of interest and penalties on the unremitted income tax obligations. No material interest
or penalties were incurred during the three months ended March 31, 2025.

23

NOTE 10. SEGMENT INFORMATION

ASC Topic 280, Segment Reporting, establishes
standards for companies to report in their financial statements information about operating segments, products, services, geographic areas,
and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available
that is regularly evaluated by the Company’s chief operating decision maker (“CODM”), or group, in deciding how to allocate
resources and assess performance.

The Company is a blank check company formed for
the purpose of effecting a Business Combination. As of March 31, 2025, the Company had not commenced any operations. The Company will
not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will
generate non-operating income in the form of interest income on the investments held in the Trust Account.

The Company’s CODM has been identified as
the Chief Executive Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources
and assessing financial performance. Accordingly, management has determined that the Company is a single segment entity. When
evaluating the Company’s performance