Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 778

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 2
Chunk 778
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 common stock subject to possible redemption in accordance with the guidance in ASC 480, Distinguishing Liabilities
from Equity (“ASC 480”). Class A common stock subject to mandatory redemption (if any) are classified as a liability instrument
and are measured at fair value. Conditionally redeemable common stock (including common stock that feature redemption rights that are
either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s
control) are classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s
Class A common stock sold as part of its IPO features certain redemption rights that are considered to be outside of the Company’s
control and subject to the occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption are
classified as temporary equity and are accreted from the initial carrying amount to the redemption value over the period from the date
of issuance to the earliest redemption date of the instrument on a straight-line basis. Subsequent to the IPO date, the accretion also
includes the dividend and interest income earned in the Trust Account in excess of income and franchise taxes as well as required deposits
to extend the life of the Company, which currently occur on a monthly basis. 

The redemption
values as of December 31, 2024 and 2023 include $100,000 that can be used to pay any dissolution expenses, should a dissolution event
occur. The redemption value of the Class A common stock subject to possible redemption will be reduced by the estimated dissolution expenses
to be paid from the interest earned in the Trust Account, up to $100,000, if and when a dissolution is deemed probable. 

The reconciliation
of Class A common stock subject to possible redemption as of December 31, 2024 is as follows: 

    Gross proceeds from sale of Public Units  
    $54,210,000 
  
    Less: Proceeds allocated to Public Warrants  
     (1,218,153)
  
    Less: Proceeds allocated to underwriters’ over-allotment option  
     (134,584)
  
    Less: Issuance costs allocated to Class A common stock subject to possible redemption    
     (3,928,774)
  
    Less: Redemption of Class A common stock 
     (30,194,356)
  
    Accretion to redemption value  
     11,289