Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 673

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1C
Chunk 673
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 Event”),
all of such director’s shares shall be returned to Sponsor. Further, considering that in case the business combination does not
occur these awards will be forfeited, it was deemed that the above terms result in the vesting provision whereby the share awards would
vest only upon the consummation of a business combination or change of control event. As a result, any compensation expense in relation
to these grants will be recognized at the Triggering Event. Therefore, the Company recorded no compensation expense for the period from
March 3, 2022 (inception) through December 31, 2024. 

The fair
value of the Founder Shares on the grant date was approximately $0.81 per share. The valuation performed by the Company determined the
fair value of the shares on the date of grant by applying a discount based upon (a) the probability of a successful IPO, (b) the probability
of a successful business combination, and (c) the lack of marketability of the Founder Shares. The aggregate grant date fair value of
the awards amounted to approximately $40,500. 

Total unrecognized
compensation expense related to unvested Founder Shares at December 31, 2024 and 2023 amounted to approximately $40,500 and is expected
to be recognized upon the Triggering Event. 

Representative
Shares 

On March
16, 2023, in conjunction with the IPO, the Company issued to the underwriter 52,000 shares of Class A common stock for nominal consideration
(the “Representative Shares”). 

On March
17, 2023, the underwriters partially exercised their over-allotment option. As a result of the partial over-allotment, the underwriter
received an additional 2,210 Representative Shares, bringing the total Representative Shares to 54,210. 

The fair
value of the Representative Shares was accounted for as compensation under ASC 718 and was included in the offering costs. The fair value
of the 54,210 Representative Shares at the date of issuance was determined to be $270,520. 

NOTE
9 - INCOME TAXES 

For the
years ended December 31, 2024 and 2023, the Company incurred $430,783 and $443,990, respectively, of current income tax expense. 

The Company’s
income tax provision consists of the following as of December 31, 2024 and 2023:

    December 31,