Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 829

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 3
Chunk 829
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able year, (ii) the structure of any business combination and the taxable year in which it occurs (including redemptions in connection
with the Special Meeting), (iii) the nature and amount of any equity issuances, in connection with a business combination or otherwise,
issued within the same taxable year, (iv) whether we completely liquidate and dissolve within the taxable year of such redemptions, and
(v) legal uncertainties regarding how the excise tax applies to transactions like the business combination (and, if applicable, a complete
liquidation and dissolution of the Company) and the content of final and proposed regulations and further guidance from the Treasury.
The foregoing could cause a reduction in the cash available on hand to complete a business combination and in our ability to complete
a business combination. The proceeds placed in the trust account and the interest earned thereon will not be used to pay for the excise
tax that may be levied on the Company in connection with such redemptions. The Company further confirms that it will not utilize any funds
from the trust account to pay any such excise tax.

On June 18, 2024, the Company’s stockholders
redeemed 2,752,307 Class A common stock shares for a total of $30,194,356. The Company evaluated the current status and probability of
the excise taxes becoming payable under the guidance in ASC 450, Contingencies, and determined that a contingent liability should
be calculated and recorded. During the year ended December 31, 2024, the Company incurred $301,944 excise tax liability related to the
June 18, 2024, redemptions. The excise tax liability totaled $301,944 and $0 as of December 31, 2024 and 2023, respectively.

76

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 M