Company: FORL
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045609
Chunk: 137

Company: Four Leaf Acquisition Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 4
Chunk 137
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Item 4. Controls and Procedures

Limitations on Effectiveness of Controls and
Procedures

Disclosure controls and procedures are controls
and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure
controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive
Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

37

Evaluation of Disclosure Controls and Procedures

As required by Rules 13a-15(f) and 15d-15(f)
under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the
design and operation of our disclosure controls and procedures as of March 31, 2025. Based upon their evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that during the period covered by this report, our disclosure controls and procedures were
not effective due to a material weakness in internal controls over financial reporting related to the Company’s review and approval
of cash disbursements.

During the third quarter of 2024, the Company
withdrew $464,229 of interest and dividend income earned in the Trust Account (the “Withdrawn Trust Funds”). Such Withdrawn
Trust Funds were restricted for payment of the Company’s tax liabilities as provided in the Company’s certificate of incorporation
and the terms of the Trust Agreement. During the third quarter of 2024, the Company mistakenly used $110,269 of the Withdrawn Trust Funds
for the payments of general operating expenses counter to the terms of the Trust Agreement. Furthermore, during the first quarter of 2025,
the Company mistakenly used an additional $15,881 of the Withdrawn Trust Funds for the payments of general operating expenses counter
to the terms of the Trust Agreement. As a result of the foregoing, management concluded that the existing control structure failed and
that a material weakness exists in our internal control over financial reporting related to the review and approval of cash disbursements.
As of March 31, 2025, a total of $126,150 of the funds had yet to be replenished to the Company’s cash or trust accounts.

To address this material weakness management has
devoted, and plans to continue to devote