Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 109

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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business combination or the Company’s liquidation, the Company will cease paying these monthly fees. As of March 31, 2025 and December
31, 2024, $212,180 and $182,180, respectively, of amounts due to the Sponsor under the Administrative Support Agreement remain unpaid,
and are included in Due to Related Party on the Company’s unaudited condensed balance sheets.

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.

37

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 March 31, 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withdrew $464,229 of interest and dividend income earned in the Trust Account (the “Withdrawn Trust Funds”). Such Withdrawn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