Financial Performance - For the three months ended June 30, 2023, the Company reported a net income of $453,111, primarily from $666,505 of dividend and interest income earned in the Trust Account[146]. - The Company incurred $253,135 in formation and general administrative costs for the three months ended June 30, 2023[146]. - The Company incurred $141,062 in income tax expense for the six months ended June 30, 2023, primarily related to dividend and interest income[146]. - The Company has generated no operating revenues to date and does not expect to until after completing a business combination[136]. IPO and Trust Account - The Company raised total gross proceeds of $54,210,000 from its IPO by selling 5,200,000 units at an offering price of $10.00 per unit[128]. - The Company placed $55,836,300 in a trust account, which will be used for its initial business combination[133]. - As of June 30, 2023, the Company had cash in the Trust Account of $56,564,625, which is intended for the initial business combination[139]. - The underwriter is entitled to $1,897,350 in deferred underwriting commissions, payable only if the Company completes an initial business combination[149]. Business Combination Timeline - The Company has until March 22, 2024, to complete its initial business combination, with a possible extension to August 22, 2024[134]. Working Capital and Loans - As of June 30, 2023, the Company had cash of $148,233 and a working capital deficit of $136,743[135]. - The Company has zero amounts borrowed under Working Capital Loans as of June 30, 2023[138]. - The Company has the option to convert up to $2,000,000 in Working Capital Loans into warrants at $1.00 per warrant upon consummation of a business combination[172]. - The Company has no borrowings under the Working Capital Loans as of June 30, 2023[173]. Administrative Support and Expenses - The Company has entered into an administrative support agreement, paying the Sponsor $10,000 per month for up to 12 months, totaling $30,000 in expenses for the three and six months ended June 30, 2023[150]. - The Company incurred $30,000 in administrative support expenses for the three and six months ended June 30, 2023, which are included in the balance sheet under Due to related party[174]. Shareholder and Sponsor Information - The Sponsor purchased 3,449,500 Private Placement Warrants at $1.00 each, totaling $3,449,500, with an additional $127,500 generated from the partial exercise of the underwriters' over-allotment option[167][168]. - The Sponsor forfeited 373,750 Founder Shares, resulting in a total of 1,355,250 Founder Shares held by the Sponsor and directors[166]. - As of June 30, 2023, the Company recorded $0 due from related parties, down from $2,820 as of December 31, 2022[169]. Internal Control and Compliance - The Company identified a material weakness in internal control over financial reporting related to the review and approval of cash disbursements[177]. - Management is dedicating significant effort and resources to remediate and improve internal control over financial reporting[178]. - Additional controls have been implemented for vendor verification and payment reviews by authorized individuals[178]. - The Company requires additional time to ensure that the newly implemented controls will operate effectively[179]. - There have been no other changes in internal control over financial reporting that materially affect the internal controls during the most recently completed fiscal quarter[180]. - The Company is evaluating the impact of new accounting standards effective after December 15, 2023, which may affect its financial statements[161].
Four Leaf Acquisition Corporation(FORLU) - 2023 Q2 - Quarterly Report