Company: BCAR
Filing Date: 2025-04-29
Form Type: S-1
Source: 0001829126-25-003006
Chunk: 286

Company: D. Boral ARC Acquisition I Corp.
Filing Date: 2025-04-29
Form: S-1
Chunk 286
---
 basis in the warrants. If the cashless exercise was not a realization event, it is unclear whether a U.S. Holder’s holding period for the Class A ordinary share will commence on the date of exercise of the warrant or the day following the date of exercise of the warrant. If the cashless exercise were treated as a recapitalization, the holding period of the Class A ordinary shares would include the holding period of the warrants.

It is also possible that a cashless exercise may be
treated as a taxable exchange in which gain or loss would be recognized. In such event, a U.S. Holder may be deemed to have
surrendered warrants with an aggregate value equal to the exercise price for the total number of warrants deemed exercised. Subject
to the PFIC rules discussed below, the U.S. Holder would recognize capital gain or loss in an amount equal to the difference between
the fair market value of the warrants deemed surrendered and the U.S. Holder’s tax basis in such warrants. In this case, a
U.S. Holder’s tax basis in the Class A ordinary shares received would equal the sum of the U.S. Holder’s initial
investment in the warrants deemed exercised (i.e., the portion of the U.S. Holder’s purchase price for the units that is
allocated to such warrants, as described above under “— Allocation of Purchase Price and Characterization of a Unit”) and the exercise price of such warrants. It is unclear whether a U.S. Holder’s holding period for the Class A
ordinary shares would commence on the date of exercise of the warrant or the day following the date of exercise of the warrant.

Due to the absence of authority on the United States federal income tax treatment of a cashless exercise, there can be no assurance which, if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of a cashless exercise.

Subject to the PFIC rules described below, if we
redeem warrants for cash pursuant to the redemption provisions described in the section of this prospectus entitled
“Description of Securities — Warrants” or if we purchase warrants in an open market transaction, such
redemption or purchase generally will be treated as a taxable disposition to the U.S. Holder, taxed as described above under
“— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares and Warrants