Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 1258

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 6
Chunk 1258
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 stock for the 10 trading days ending on the third day prior to the
date on which the notice of redemption is sent to the holders of warrants. 

F-23

NOTE
8 - STOCK-BASED COMPENSATION 

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 December 31, 2024. 

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 December 31, 2024 and 2023 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