Company: FORL
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001213900-25-080962
Chunk: 133

Company: Four Leaf Acquisition Corp
Filing Date: 2025-08-27
Form: 10-Q
Item: Part I, Item 3
Chunk 133
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Item
3. Quantitative and Qualitative Disclosures About Market Risk

The
Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information
otherwise required under this item.

Item
4. Controls and Procedures

Limitations
on Effectiveness of Controls and Procedures

Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our
reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated
to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Evaluation
of Disclosure Controls and Procedures

As
required by Rules 13a-15(f) and 15d-15(f) under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out
an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2025. Based upon
their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that during the period covered by this report, our
disclosure controls and procedures were not effective due to a material weakness in internal controls over financial reporting related
to the Company’s review and approval of cash disbursements.

During
the third quarter of 2024, the Company withdrew $464,229 of interest and dividend income earned in the Trust Account (the “Withdrawn
Trust Funds”). Such Withdrawn Trust Funds were restricted for payment of the Company’s tax liabilities as provided in the
Company’s certificate of incorporation and the terms of the Trust Agreement. During the third quarter of 2024, the Company mistakenly
used $110,269 of the Withdrawn Trust Funds for the payments of general operating expenses counter to the terms of the Trust Agreement.
Furthermore, during the first and second quarters of 2025, the Company mistakenly used, in aggregate, an additional $7,341 of the Withdrawn
Trust Funds for the payments of general operating expenses counter to the terms of the Trust Agreement. As a result of the foregoing,
management concluded that the existing control structure failed and that a material weakness exists in our internal control over financial
reporting related to the review and approval of cash disburse