Four Leaf Acquisition (FORL) - 2024 Q1 - Quarterly Report

IPO and Trust Account - The Company completed its IPO on March 16, 2023, raising total gross proceeds of $54,210,000 from the sale of 5,421,000 units at an offering price of$10.00 per unit[138]. - Following the IPO, the Company placed $55,836,300 in a trust account, which will be used for its initial business combination[142]. - The Company has$59,363,777 in the Trust Account as of March 31, 2024, which is intended for the initial business combination[151]. - The deferred underwriting commissions payable to the underwriter amount to $1,897,350, contingent upon the completion of an initial business combination[162]. Financial Position and Liquidity - As of March 31, 2024, the Company had cash of$5,244 and a working capital deficit of $1,815,886, indicating significant liquidity challenges[148]. - The Company has outstanding Working Capital Loans of$1,134,100 from its Sponsor as of March 31, 2024, which are to be repaid upon the consummation of a business combination[150]. - If the Company fails to complete a business combination by June 22, 2024, it will cease operations and redeem shares at a price based on the Trust Account balance[144]. - The Company has until June 22, 2024, to consummate a business combination, with a potential extension to September 22, 2024[143]. - The Company has significant doubt about its ability to continue as a going concern if a business combination is not consummated by the deadline[155]. Revenue and Income - The Company has not generated any revenues to date and does not expect to do so until after completing a business combination[149]. - For the three months ended March 31, 2024, the company reported a net income of $130,602, primarily due to$757,940 in dividend and interest income, offset by $452,417 in formation and operating costs and$174,921 in income tax expense[158]. - In comparison, for the three months ended March 31, 2023, the company experienced a net loss of $42,784, primarily due to$58,384 in formation and operating costs and a $39,181 loss related to the change in fair value of the over-allotment liability[159]. - The increase in dividend and interest income from$61,820 in Q1 2023 to $757,940 in Q1 2024 was attributed to the deposit from the IPO proceeds into the Trust Account on March 22, 2023[159]. - The company has not generated any operating revenues since the IPO, as activities have been limited to searching for a prospective initial business combination[157]. Expenses and Loans - The Company has incurred$4,019,087 in transaction costs related to the IPO, including $2,710,500 in underwriting commissions[140]. - The company incurred$30,000 in expenses related to the administrative support agreement for the three months ended March 31, 2024, compared to immaterial expenses in the same period of 2023[163]. - The company has the potential to obtain up to $2,000,000 in Working Capital Loans from the Sponsor or affiliates to finance transaction costs related to a business combination[183]. - The Company received$862,100 in Working Capital Loans from the Sponsor during the three months ended March 31, 2024, with $542,000 allocated for the Initial Extension[184]. - As of March 31, 2024, the outstanding Working Capital Loans from the Sponsor totaled$1,134,100, compared to $272,000 as of December 31, 2023[184]. Related Party Transactions - As of March 31, 2024, the company had$92,180 due to the Sponsor under the Administrative Support Agreement, included in Due to Related Party on the condensed balance sheets[163]. - As of March 31, 2024, $92,180 remains unpaid to the Sponsor under the Administrative Support Agreement, included in Due to Related Party on the balance sheets[186]. Accounting Standards - The company is evaluating the potential impact of adopting new accounting standards, including ASU 2023-09, which addresses improvements to income tax disclosures[173].