Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 326

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 326
---
 of the future combined company’s
PRC resident stockholders to comply with the registration procedures set forth in these regulations may subject the combined company to
fines and legal sanctions, restrict its cross-border investment activities, limit the ability of its wholly foreign-owned subsidiary in
the PRC to distribute dividends and the proceeds from any reduction in capital, share transfer or liquidation, and the future combined
company may also be prohibited from injecting additional capital into the subsidiary. Moreover, failure to comply with the various foreign
exchange registration requirements described above could result in liability under PRC law for circumventing applicable foreign exchange
restrictions. As a result, if we decide to acquire a PRC domestic company, the future combined company’s business operations and
the future combined company’s ability to distribute profits to you could be materially and adversely affected.

Furthermore, as these foreign exchange regulations are still relatively
new and their interpretation and implementation has been constantly evolving, it is unclear how these regulations, and any future regulation
concerning offshore or cross-border transactions, will be interpreted, amended and implemented by the relevant government authorities.
For example, we may be subject to a more stringent review and approval process with respect to our foreign exchange activities, such as
remittance of dividends and foreign-currency-denominated borrowings, which may adversely affect our financial condition and results of
operations. In addition, if we decide to acquire a PRC domestic company, we cannot assure you that we or the owners of such company, as
the case may be, will be able to obtain the necessary approvals or complete the necessary filings and registrations required by the foreign
exchange regulations. This may restrict our ability to implement our acquisition strategy and could adversely affect our business and
prospects.

60

Though we affirmatively exclude as an initial business combination
target any company of which financial statements are audited by an accounting firm that the PCAOB is unable to inspect for two consecutive
years beginning in 2022, we cannot assure you that certain existing or future U.S. laws and regulations may restrict or eliminate our
ability to complete a business combination with certain companies, particularly those target companies in the PRC.

The PCAOB is currently unable to conduct inspections on accounting
firms in the PRC without the approval of the Chinese government authorities. The auditor and its audit work in the PRC may not be inspected
fully by the PCAOB. Inspections of other auditors conducted by the PCAOB outside the PRC have at times identified deficiencies in those