Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 362

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 362
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 financial reporting and the preparation of our financial
statements for external reporting purposes in accordance with GAAP. Our internal control over financial reporting includes those policies
and procedures that:

(1)pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of our company,

(2)provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being
made only in accordance with authorizations of our management and directors, and

(3)provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Management assessed the effectiveness of our internal
control over financial reporting at December 31, 2024. In making these assessments, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control — Integrated Framework
(2013). Based on these assessments and those criteria and the material weakness discussed below, management concluded that our internal
controls over financial reporting were not effective as of December 31, 2024.

This Annual Report on Form 10-K does not include
an attestation report of our independent registered public accounting firm due to our status as an emerging growth company under the JOBS
Act.

Previously Identified Material Weakness

During the third quarter of 2024, the Company
withdrew $464,229 of interest and dividend income earned in the Trust Account (the “Withdrawn Trust Funds”). Such Withdrawn
Trust Funds were restricted for payment of the Company’s tax liabilities as provided in the Company’s certificate of incorporation
and the terms of the Trust Agreement. During the third quarter of 2024, the Company mistakenly used $110,269 of the Withdrawn Trust Funds
for the payments of general operating expenses counter to the terms of the Trust Agreement. As a result of the foregoing, management concluded
that the existing control structure failed and that a material weakness exists in our internal control over financial reporting related
to the review and approval of cash disbursements. As of December 31, 2024, $99,006 of the funds had yet to be replenished to the Company’s
cash or trust accounts.

To address this material weakness management has
devoted, and plans to continue to devote, significant effort and resources to the remediation and improvement of its internal