Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 62

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 62
---
 to change. The over-allotment option was accounted for
as a liability under ASC 480, as it is an option exercisable into redeemable shares.

33

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. 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 the IPO, feature 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.

The change in the carrying
value of Class A common stock subject to possible redemption resulted in charges against additional paid-in capital. Subsequent to the
IPO date, the Company accretes a portion of the accretion that reflects a redemption in excess of fair value, extension deposits made
into the Trust Account and dividend and interest income earned in the Trust Account in excess of income and franchise taxes.

Recently
Adopted Accounting Pronouncements

In December 2023, the Financial Accounting Standards
Board (“FASB”) issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” that
addresses requests for improved income tax disclosures from investors that use the financial statements to make capital allocation decisions.
Public entities must adopt the new guidance for fiscal years beginning after December 15, 2024. The amendments in this ASU must be applied
on a retrospective basis to all prior periods presented in the financial statements and early adoption is permitted. We adopted this standard
on January 1, 2025 and determined that the adoption does not have a material impact on these una