Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 61

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 to the terms of the underwriting agreement.

Administrative
Support Agreement

On March 22, 2023, the
Company entered into the administrative support agreement under which it pays the Sponsor a total of $10,000 per month, up until the completion
of the Company’s initial business combination or liquidation, for secretarial and administrative services. The Company’s expenses
related to the administrative support agreement were $30,000 for each of the three months ended March 31, 2025 and 2024. Upon completion
of the initial business combination or the Company’s liquidation, the Company will cease paying these monthly fees. As of March
31, 2025 and December 31, 2024, $212,180 and $182,180, respectively, of amounts due to the Sponsor under the Administrative Support Agreement
remain unpaid, and are included in Due to Related Party on the Company’s unaudited condensed balance sheets.

Critical Accounting
Policies and Estimates

The preparation of the
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Significant assumptions
include the excise tax liability in connection with redemption of Class A common stock. Actual results could differ from those estimates.

Derivative Financial
Instruments

The Company issued warrants
to its investors, and the over-allotment option to the underwriter. The Company accounts for financial instruments as either equity-classified
or liability-classified instruments based on an assessment of the specific terms of the instruments and applicable authoritative guidance
in ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC
815”). The assessment considers whether the instruments are freestanding financial instruments pursuant to ASC 480, meet the definition
of a liability pursuant to ASC 480, and meet all of the requirements for equity classification under ASC 815, including whether the instruments
are indexed to the Company’s own stock and whether the holders of the instruments could potentially require “net cash settlement”
in a circumstance outside of the Company’s control, among other conditions for equity classification.

At the IPO date, the
Public Warrants and Private Placement Warrants were accounted for as equity instruments as they meet all of the requirements for equity
classification under ASC 815 based on current expected terms, which are subject