Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 271

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 271
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 the number of special purpose acquisition companies
that have been formed has increased substantially. Many potential targets for special purpose acquisition companies have already entered
into an initial business combination, and there are still many special purpose acquisition companies seeking to enter into an initial
business combination. As a result, at times, fewer attractive targets may be available to consummate an initial business combination.

In addition, because there are more special purpose acquisition companies
seeking to enter into an initial business combination with available targets, the competition for available targets with attractive fundamentals
or business models may increase, which could cause targets companies to demand improved financial terms. Attractive deals could also become
scarcer for other reasons, such as economic or industry sector downturns, geopolitical tensions, or increases in the cost of additional
capital needed to close business combinations or operate targets post-business combination. This could increase the cost of, delay or
otherwise complicate or frustrate our ability to find and consummate an initial business combination and may result in our inability to
consummate an initial business combination on terms favorable to our investors or at all.

31

We may be subject to the Excise Tax included in the Inflation Reduction
Act of 2022 in the event of a liquidation or in connection with redemptions of our common stock.

On August 16, 2022, President Biden signed into law the Inflation Reduction
Act of 2022 (H.R. 5376) (the “IRA”), which, among other things, imposes a 1% excise tax on any domestic corporation that repurchases
its stock after December 31, 2022 (the “Excise Tax”). The Excise Tax is imposed on the fair market value of the repurchased
stock, with certain exceptions. Because we are a Delaware corporation and our securities are traded on the Nasdaq, we believe we are a
“covered corporation” within the meaning of the IRA. While not free from doubt, absent any further guidance from Congress,
the Excise Tax may apply to any redemptions of our common stock after December 31, 2022, including redemptions in connection with an initial
business combination and any amendment to our Certificate of Incorporation to extend the time to consummate an initial business combination,
unless an exemption is available or the fair market value of stock repurchased or redeemed is offset by other equity issuances occurring
within the same taxable year of such redemptions. Consequently, the value of your investment in our securities may