Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 66

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 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 three months ended March
31, 2025 or 2024. The excise tax liability totaled $301,944 as of both March 31, 2025 and December 31, 2024.

35

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, par value $0.0001 (the “Founder Shares” or “Class B common stock”). On May 10, 2022, the Sponsor surrendered
287,500 Founder Shares, for no consideration, resulting in the Sponsor and directors continuing to hold 1,868,750 Founder Shares. On August
26, 2022, the Sponsor transferred 25,000 Founder Shares to each of Rahul Mewawalla and Stephen Markscheid, each of which are members of
the Company’s Board of Directors (Note 8). The awards will vest simultaneously with the closing of an initial business combination,
provided the director has continuously served on the Company’s Board of Directors through the closing of such initial business combination.
On March 16, 2023, the Sponsor forfeited an aggregate of 373,750 Founder Shares for no consideration, resulting in the Sponsor and directors
holding an aggregate of 1,495,000 Founder Shares. Up to 195,000 of the Founder Shares were subject to forfeiture to the extent the over-allotment
option was not exercised in full by the underwriter prior to its expiration date on April 30, 2023.

On March 17, 2023, upon
the partial exercise their over-allotment option by the underwriters, the forfeiture lapsed for 55,250 Founder Shares. Following the expiration
of the underwriters’ remaining over- allotment option on April 30, 2023, the remaining 139,750 Founder Shares were forfeited, resulting
in the Sponsor and directors holding an aggregate of 1,355,250 Founder Shares.

Private Placement