Company: FORL
Filing Date: 2025-08-27
Form Type: 10-Q
Source: 0001213900-25-080962
Chunk: 33

Company: Four Leaf Acquisition Corp
Filing Date: 2025-08-27
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 due to their short-term
nature.

Concentration
of Credit Risk 

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution,
which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on these accounts.

Share-Based
Payment Arrangements 

The
Company accounts for stock awards in accordance with ASC 718, which requires that all equity awards be accounted for at their fair value.
Fair value is measured on the grant date and is equal to the underlying value of the stock. 

Costs
equal to these fair values are recognized ratably over the requisite service period based on the number of awards that are expected to
vest, or in the period of grant for awards that vest immediately and have no future service condition. For awards that vest over time,
cumulative adjustments in later periods are recorded to the extent actual forfeitures differ from the Company’s initial estimates;
previously recognized compensation cost is reversed if the service or performance conditions are not satisfied, and the award is forfeited.

Common
Stock Subject to Possible Redemption 

The
Company accounts for its 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 June