Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 93

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 93
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For this purpose, passive
income generally consists of rents, dividends, interest, royalties, gains from the disposition of passive assets and gains from commodities
and securities transactions. Cash is treated as generating passive income.

Based primarily on the composition
of our assets, it is possible that we will be a PFIC for our tax year ending December 31, 2024, and for subsequent tax years. However,
the determination of PFIC status is a factual determination that must be made annually at the close of each taxable year and therefore,
there can be no certainty as to our PFIC status for a taxable year until the close of that taxable year. Our PFIC status could change
depending upon, among other things, a decrease in the trading price of our ordinary shares or ADSs and how quickly we make use of the
proceeds from the offering, as well as changes in the composition and relative values of our assets and the composition of our income.
Moreover, the rules governing whether certain assets are active or passive are complex and in some cases their application can be uncertain.
If we were a PFIC in any year during a U. S. holder’s holding period for the ordinary shares or ADSs, we generally would continue
to be treated as a PFIC for each subsequent year during which the U. S. holder owned the ordinary shares or ADSs.

If we currently are or become
a PFIC, each U. S. Holder who has not elected to mark the shares to market (as discussed below), would, upon receipt of certain “excess
distributions” by us and upon disposition of our ordinary shares or ADSs at a gain: (1) have such excess distribution or gain allocated
ratably over the U. S. Holder’s holding period for the ordinary shares or ADSs, as the case may be; (2) the amount allocated to the
current taxable year and any period prior to the first day of the first taxable year in which we were a PFIC would be taxed as ordinary
income; and (3) the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for
the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to
the resulting tax attributable to each such other taxable year. Distributions received by a U. S.