Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 826

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 3
Chunk 826
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 feature 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.

The change in the carrying value of Class A common
stock subject to possible redemption resulted in charges against additional paid-in capital. Subsequent to the IPO date, the Company accretes
a portion of the accretion that reflects a redemption in excess of fair value, extension deposits made into the Trust Account and dividend
and interest income earned in the Trust Account in excess of income and franchise taxes.

Recent Accounting Standards

In August 2020, the FASB issued ASU 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This guidance changes how entities account
for convertible instruments and contracts in an entity’s own equity and simplifies the accounting for convertible instruments by
removing certain separation models for convertible instruments. This guidance also modifies the guidance on diluted earnings per share
calculations. This new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December
15, 2023, but allows for early adoption. The Company adopted ASU 2020-06 on January 1, 2024 which had no impact on its financial statements.

In December 2023, the FASB issued ASU 2023-09
“Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” that addresses requests for improved income tax disclosures
from investors that use the financial statements to make capital allocation decisions. Public entities must adopt the new guidance for
fiscal years beginning after December 15, 2024. The amendments in this ASU must be applied on a retrospective basis to all prior periods
presented in the financial statements and early adoption is permitted. The Company is currently evaluating the potential impact that the
adoption of this standard will have on its financial statements