Company: FORL
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001213900-25-080962
Chunk: 112

Company: Four Leaf Acquisition Corp
Filing Date: 2025-08-27
Form: 10-Q
Item: Part I, Item 2
Chunk 112
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 reduction in the cash available on hand to complete a Business Combination and in our ability to complete
a Business Combination. The proceeds placed in the trust account and the interest earned thereon will not be used to pay for the excise
tax that may be levied on the Company in connection with such redemptions. The Company further confirms that it will not utilize any
funds from the trust account to pay any such excise tax.

On
June 18, 2024, the Company’s stockholders redeemed 2,752,307 Class A common stock shares for a total of $30,194,356. 

On
June 27, 2025, the Company’s stockholders exercised their rights to redeem 1,708,386 Class A common stock shares. As a result,
approximately $19.9 million (approximately $11.62 per share) of funds were restricted for payment to the redeeming shareholders. As of
June 30, 2025, the redemption payment had yet to occur, and as such, the $19.9 million restricted for the redeeming shareholders has
been presented as Restricted cash – held in trust account on the unaudited condensed balance sheet. During August of 2025, the
Company remitted payment to the redeeming stockholders in the amount of $19.9 million.

The
Company evaluated the 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. During the three and
six months ended June 30, 2025, the Company accrued $198,569 of excise tax liability related to the June 27, 2025 redemptions.
During the three and six months ended June 30, 2024, the Company accrued $301,944 of excise tax liability related to the June 18,
2024 redemptions. The excise tax liability totaled $500,512 and $301,944 as of June 30, 2025, and December 31, 2024,
respectively.

Related
Party Transactions

Founder
Shares

In
May 2022, the Sponsor paid $25,000, or approximately $0.011 per share, to cover certain offering costs in consideration for 2,156,250
shares of Class B common stock. On May 10, 2022, the Sponsor