Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 272

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 272
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 be affected as a result
of the Excise Tax. Further, the application of the Excise Tax in the event of a liquidation is uncertain absent further guidance. Issuances
of securities in connection with our initial business combination transaction (including any PIPE transaction at the time of our initial
business combination) are expected to reduce the amount of the Excise Tax in connection with redemptions occurring in the same calendar
year, but the number of securities redeemed may exceed the number of securities issued. Consequently, the Excise Tax may make a transaction
with us less appealing to potential business combination targets. Further, the application of the Excise Tax in the event of a liquidation
is uncertain. Except for franchise taxes and income taxes, the proceeds placed in the trust account and the interest earned thereon shall
not be used to pay for possible excise tax or any other fees or taxes that may be levied on us pursuant to any current, pending or future
rules or laws, including without limitation any excise tax due under the IRA on any redemptions or stock buybacks by us.

Changes in the market for directors’ and officers’ liability
insurance could make it more difficult and more expensive for us to negotiate and complete an initial business combination.

In recent months, the market for directors’ and officers’
liability insurance for special purpose acquisition companies has changed in ways adverse to us and our management team. The premiums
charged for such policies have generally increased and the terms of such policies have generally become less favorable. These trends may
continue into the future.

The increased cost and decreased availability of directors’ and
officers’ liability insurance could make it more difficult and more expensive for us to negotiate an initial business combination.
In order to obtain directors’ and officers’ liability insurance or modify its coverage as a result of becoming a public company,
the post-business combination entity might need to incur greater expense, accept less favorable terms or both. However, any failure to
obtain adequate directors’ and officers’ liability insurance could have an adverse impact on the post-business combination’s
ability to attract and retain qualified officers and directors.

In addition, even after we were to complete an initial business combination,
our directors and officers could still be subject to potential liability from claims arising from conduct alleged to have occurred prior
to the initial business combination. As a result, in order to protect our directors and officers, the post-business combination entity
will likely need to purchase additional insurance with respect to any such claims (“run-off