Company: IMNN
Filing Date: 2025-05-19
Form Type: S-1/A
Source: 0001641172-25-011388
Chunk: 53

Company: Imunon, Inc.
Filing Date: 2025-05-19
Form: S-1/A
Chunk 53
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, or other entity treated as a partnership or disregarded from its owner, each for U.S. federal income tax purposes.

Treatment of Pre-funded Warrants

Although it is not entirely free from doubt, a pre-funded warrant should be treated as a share of our Common Stock for U.S. federal income tax purposes and a holder of pre-funded warrants should generally be taxed in the same manner as a holder of Common Stock, as described below. Accordingly, no gain or loss should be recognized upon the exercise of a pre-funded warrant and, upon exercise, the holding period of a pre-funded warrant should carry over to the share of Common Stock received. Similarly, the tax basis of the pre-funded warrant should carry over to the share of Common Stock received upon exercise, increased by the exercise price of $0.0001. However, our characterization of a pre-funded warrant is not binding on the IRS, and the IRS may treat the pre-funded warrants as warrants to acquire Common Stock and, if so, the amount and character of a holder’s gain with respect to an investment in a pre-funded warrant could change. Each holder should consult his, her or its own tax advisor regarding the risks associated with the acquisition of pre-funded warrants pursuant to this offering (including potential alternative characterizations). The balance of this discussion generally assumes that the characterization described above is respected for U.S. federal income tax purposes and the discussion below, to the extent it pertains to shares of our Common Stock, is generally intended also to pertain to pre-funded warrants.

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Allocation of Purchase Price for Investment Units

Each pre-funded warrant will be sold as a unit with a common warrant and each share of Common Stock will be sold as a unit with a common warrant, and each of the items is referred to as a component of a unit. For U.S. federal income tax purposes, each unit consisting of the pre-funded warrants and common warrants in one case, and the Common Stock and common warrants in the other, should each be treated as an “investment unit” consisting of one share of Common Stock (see discussion above under the section titled “— Treatment of Pre-funded Warrants” regarding a pre-funded warrant being treated as a share of our Common Stock for U.S. federal income tax purposes) and one common warrant to acquire one share of our Common Stock. The purchase price for each investment unit should be allocated between the two components in proportion to their relative fair market values at the time the unit is purchased by the holder. This allocation of the purchase price for