Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 110

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 110
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, during the first quarter of 2025,
the Company mistakenly used an additional $15,881 of the Withdrawn Trust Funds for the payments of general operating expenses counter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 March 31, 2025, a total of $126,150 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 control
over financial reporting.

    ●
    The Company implemented additional controls related to vendor verification.

    ●
    The Company implemented additional reviews of each payment made by several authorized individuals.

    ●
    The Company is in the process of opening a separate bank account to segregate the funds that are restricted as to their use from those that can be utilized for working capital needs.

We can offer no assurance that these initiatives
will ultimately have the intended effects.

Changes in Internal Control Over Financial
Reporting

Other than changes that have resulted from the
material weakness remediation activities noted above, there has been no change in the internal control over financial reporting, during
the most recently completed fiscal quarter, that has materially affected, or is reasonably likely to materially affect, the internal control
over financial reporting.

38

PART II-OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

As a “smaller reporting
company” as defined by Item 10 of Regulation S-K, the Company is not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

39

Item 6. Exhibits. 

    Exhibit
Number
     
    Description
  
    10.1
     
    Promissory Note, dated April 30, 2025, issued to ALWA Sponsor, LLC (Incorporated by reference to Exhibit 10.8 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on April