Company: FORL
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001213900-25-080962
Chunk: 107

Company: Four Leaf Acquisition Corp
Filing Date: 2025-08-27
Form: 10-Q
Item: Part I, Item 2
Chunk 107
---
 other cash settlement provisions resulting from
delays in registering securities.

Underwriting
Agreement

$1,897,350
in the aggregate (reflecting the partial exercise by the underwriter of its over-allotment option), will be payable to the underwriter
for deferred underwriting commissions. The deferred fee will become payable to the underwriter from the amounts held in the Trust Account
solely in the event that the Company completes an initial business combination, subject to the terms of the underwriting agreement.

Administrative
Support Agreement

On
March 22, 2023, the Company entered into the administrative support agreement under which it pays the Sponsor a total of $10,000
per month, up until the completion of the Company’s initial business combination or liquidation, for secretarial and administrative
services. The Company’s expenses related to the administrative support agreement were $30,000 and $60,000 for the three and six
months ended June 30, 2025, respectively. The Company’s expenses related to the administrative support agreement were $30,000
and $60,000 for the three and six months ended June 30, 2024, respectively. Upon completion of the initial business combination
or the Company’s liquidation, the Company will cease paying these monthly fees. As of June 30, 2025, $242,180 of amounts due
to the Sponsor under the Administrative Support Agreement remain unpaid, and are included in Due to Related Party on the unaudited condensed
balance sheets.

Critical
Accounting Policies and Estimates

The
preparation of the unaudited condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements. Significant estimates include the excise tax liability in connection with redemptions
of Class A common stock that occurred at the 2025 Special Meeting and the 2024 Special Meeting.  Actual results could differ from
those estimates

34

Derivative
Financial Instruments

The
Company issued Warrants to its investors, and the over-allotment option to the underwriter. The Company accounts for financial instruments
as either equity-classified or liability-classified instruments based on an assessment of the specific terms of the instruments and applicable
authoritative guidance in ASC 480 and ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The assessment