Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 774

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 2
Chunk 774
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30,194,356. The Company evaluated
the current status and probability of the excise taxes becoming payable in relation to these redemptions under the guidance in ASC 450,
Contingencies, and determined that a contingent liability should be calculated and recorded. For the year ended December 31, 2024,
the Company incurred $301,944 excise tax liability related to the June 18, 2024 redemptions. No such redemptions occurred during
the year ended December 31, 2023. The excise tax liability totaled $301,944 and $0 as of December 31, 2024 and 2023, respectively.

Franchise
and Income Tax Withdrawals

During the
year ended December 31, 2024, the Company withdrew $1,031,029 of interest and dividend income earned in the Trust Account for payment
of the Company’s franchise and income tax liabilities. As of December 31, 2024, $99,006 of the funds were inadvertently used for
the payments of general operating expenses. The Company is expected to replenish these amounts via a Working Capital Loan from its Sponsor
or another similar type of financing.

F-15

NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Basis
of Presentation 

The accompanying
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) and pursuant to the rules and regulations of the SEC. 

Use of
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 fair value of the Company’s Public Warrants and Representative Shares at their issuance dates, the valuation
of the over-allotment option provided to the underwriters and the excise tax liability in connection with redemption of Class A common
stock that occurred at the 2024 Special Meeting. Actual results could differ from those estimates. 

Emerging
Growth Company 

The Company
is an “emerging growth company”, as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business
Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements
that are