Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 327

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 327
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auditors’ audit procedures and quality control procedures, which may be addressed as part of the inspection process to improve future
audit quality. The lack of PCAOB inspections of audit work undertaken in the PRC prevents the PCAOB from regularly evaluating the PRC
auditor’s audits and its quality control procedures.

Further, future developments in U.S. laws may restrict our ability
or willingness to complete certain business combinations with companies. For instance, the HFCA Act would restrict our ability to consummate
a business combination with a target business unless that business met certain standards of the PCAOB. Under the HFCA Act, if the PCAOB
is unable to inspect an issuer’s public accounting firm for three consecutive years, the issuer may suffer adverse consequences
including the delisting of its securities and prohibition of trading its securities on a national securities exchange or in the over-the-counter
trading market in the U.S. Consequently, it would substantially impair the investors’ ability to sell or purchase such issuer’s
securities when the investors wish to do so, and the risk and uncertainty associated with potential delisting and prohibition would have
a negative impact on the price of such issuer’s securities. Also, such delisting and prohibition could significantly affect our
ability to raise capital on acceptable terms, or at all, which would have a material adverse effect on our business, financial condition
and prospects. The HFCA Act also requires public companies to disclose, among other things, whether they are owned or controlled by a
foreign government, specifically, those based in the PRC. Furthermore, the documentation we may be required to submit to the SEC proving
certain beneficial ownership requirements and establishing that we are not owned or controlled by a foreign government in the event that
we use a foreign public accounting firm not subject to inspection by the PCAOB or where the PCAOB is unable to completely inspect or investigate
our accounting practices or financial statements because of a position taken by an authority in the foreign jurisdiction could be onerous
and time consuming to prepare.

On June 22, 2021, the U.S. Senate passed the AHFCAA, which, if signed
into law, would amend the HFCA Act and require the delisting of one’s securities and prohibition of trading such securities on a
national securities exchange or in the over-the-counter trading market in the U.S. if its auditor is not subject to PCAOB inspections
for two consecutive years instead of three consecutive years.

Our financial statements are currently audited by Adept