Company: FORL
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001213900-25-080962
Chunk: 46

Company: Four Leaf Acquisition Corp
Filing Date: 2025-08-27
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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Class
B Common Stock Share Transfers 

In
August 2022, the Sponsor transferred 25,000 shares of Class B common stock to each of the two independent directors as compensation for
their service on the Company’s Board of Directors. If the director was no longer serving as a director of the Company at the time
of the IPO, is removed from office as director, or voluntarily resigns his position with the Company before a merger, capital stock exchange,
asset acquisition, stock purchase, reorganization or similar business combination involving the Company (“the Triggering Event”),
all of such director’s shares shall be returned to Sponsor. Further, considering that in case the business combination does not
occur these awards will be forfeited, it was deemed that the above terms result in the vesting provision whereby the share awards would
vest only upon the consummation of a business combination or change of control event. As a result, any compensation expense in relation
to these grants will be recognized at the Triggering Event. Therefore, the Company recorded no compensation expense for the period from
March 3, 2022 (inception) through June 30, 2025. 

The
fair value of the Founder Shares on the grant date was approximately $0.81 per share. The valuation performed by the Company determined
the fair value of the shares on the date of grant by applying a discount based upon (a) the probability of a successful IPO, (b) the
probability of a successful business combination, and (c) the lack of marketability of the Founder Shares. The aggregate grant date fair
value of the awards amounted to approximately $40,500. 

Total
unrecognized compensation expense related to unvested Founder Shares at June 30, 2025 and December 31, 2024 amounted to approximately
$40,500 and is expected to be recognized upon the Triggering Event. 

Representative
Shares 

On
March 16, 2023, in conjunction with the IPO, the Company issued to the underwriter 52,000 shares of Class A common stock for nominal
consideration (the “Representative Shares”). 

On
March 17, 2023, the underwriters partially exercised their over-allotment option. As a result of the partial over-allotment, the underwriter
received an additional 2,210 Representative Shares, bringing the total Representative Shares to 54,210. 

The
fair value of the Representative Shares