Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 1627

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 9
Chunk 1627
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 new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic
subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing
corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market
value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations
are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the
same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”)
has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.

On December
27, 2022, the U.S. Department of the Treasury issued Notice 2023-2 (the “Notice”) as interim guidance until publication of
forthcoming proposed regulations on the excise tax. Although the guidance in the Notice does not constitute proposed or final Treasury
regulations, taxpayers may generally rely upon the guidance provided in the Notice until the issuance of the forthcoming proposed regulations.
Certain of the forthcoming proposed regulations (if issued) could, however, apply retroactively. The Notice generally provides that if
a covered corporation completely liquidates and dissolves, distributions in such complete liquidation and other distributions by such
covered corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not subject
to the excise tax. 

Because
any redemptions of our stock in connection with a business combination, extension vote or otherwise will occur after December 31, 2022,
the redemptions that take place after that date, including the redemption on June 18, 2024 in connection with the 2024 Special Meeting,
may be subject to the excise tax. Whether and to what extent we would be subject to the excise tax in connection with any such redemptions
would depend on a number of factors, including (i) the fair market value of the such redemptions, together with any other redemptions
or repurchases we consummate in the same taxable year, (ii) the structure