Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 212

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1
Chunk 212
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 reimbursement for certain general and administrative
expenses incurred by the Company from Xiaoyu Dida as part of a non-binding letter of intent, which as of December 31, 2024 and December
31, 2023 had not been cancelled. This amount was recorded as a deferred credit associated with a potential business combination in the
accompanying balance sheets as of December 31, 2024 and December 31, 2023.

Fair
Value of Financial Instruments 

The fair
value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, Fair Value Measurement,
approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature. 

Concentration
of Credit Risk 

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution,
which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on these accounts.

F-17

Share-Based
Payment Arrangements 

The Company
accounts for stock awards in accordance with ASC 718, which requires that all equity awards be accounted for at their fair value. Fair
value is measured on the grant date and is equal to the underlying value of the stock. 

Costs equal
to these fair values are recognized ratably over the requisite service period based on the number of awards that are expected to vest,
or in the period of grant for awards that vest immediately and have no future service condition. For awards that vest over time, cumulative
adjustments in later periods are recorded to the extent actual forfeitures differ from the Company’s initial estimates; previously
recognized compensation cost is reversed if the service or performance conditions are not satisfied, and the award is forfeited. 

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, Distinguishing Liabilities
from Equity (“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