Company: FORL
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001213900-25-080962
Chunk: 47

Company: Four Leaf Acquisition Corp
Filing Date: 2025-08-27
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 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. 

24

NOTE
9 - INCOME TAXES 

The
Company’s effective tax rate (“ETR”) is calculated quarterly based upon current assumptions relating to the Company’s
known and estimable operating results and various tax-related items.

The
Company’s ETR was (285)% and 47.0% for the three months ended June 30, 2025 and 2024, respectively. The Company’s ETR was
(591)% and 48% for the six months ended June 30, 2025 and 2024, respectively. The Company’s general and administrative expenses
are generally considered start-up costs and are not currently deductible for federal income tax purposes.

The
difference between the effective tax rates of (285)% and 47% and the U.S. federal statutory rate of 21% for the three months ended June
30, 2025 and 2024, respectively, was primarily due to the change in the valuation allowance related to deferred organizational costs
and the permanent differences arising from business combination costs.

The
difference between the effective tax rates of (591)% and 48% and the U.S. federal statutory rate of 21% for the six months ended June
30, 2025 and 2024, respectively, was primarily due to the change in the valuation allowance related to deferred organizational costs
and the permanent differences arising from business combination costs and interest and penalties on income taxes.

The
Company has no uncertain tax positions related to federal and state income taxes. The federal tax returns for the Company since inception
remains open for examination.

When
the Company is assessed interest or penalties it will be classified in the financial statements as tax expense. For the six months ended
June 30, 2024, the Company incurred $22,012 of interest and penalties on the unremitted income tax obligations. No material interest
or penalties were incurred during the three and six months ended June 30, 2025 or during the three months ended June 30, 2024.

NOTE
                                            10 - SEGMENT INFORMATION

ASC
Topic 280, Segment Reporting, establishes standards for companies to report in their financial statements information about operating
segments, products, services, geographic areas, and major customers. Operating segments are defined as