Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 231

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 231
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 exchanged therefor and the exercise price. A U.S. Holder’s holding period for Class A Ordinary Shares received upon exercise of the Warrant will begin on the date following the date of exercise (or possibly the date of exercise) of the Warrant and will not include the period during which such U.S. Holder held the Warrant. If a Warrant is allowed to lapse unexercised, a U.S. Holder generally will recognize a capital loss equal to such holder’s tax basis in the Warrant.

Passive Foreign Investment Company (“PFIC”)

For U.S. federal income tax purposes, a non-U.S. corporation is considered a PFIC, as defined in Section 1297(a) of the Revenue Code, for any taxable year if either:

| ● | 75% or more of its gross income for such taxable year is passive income (as defined for U.S. federal income tax purposes)(the “income test”); or |

| ● | 50% or more of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is 
 attributable to assets that produce or are held for the production of passive income (the “asset test”).                    |

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For purposes of the PFIC provisions of the
Revenue Code, passive income generally includes dividends, interest, certain rents and royalties and certain gains from commodities
or securities transactions and the excess of gains over losses from the disposition of certain assets which produce passive income.
For purposes of the income test and asset test, we will be treated as owning our proportionate share of the assets and earning our
proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the
stock. In determining the value and composition of our assets for purposes of the PFIC asset test, (1) the cash we raise in
this offering will generally be considered to be held for the production of passive income and (2) the value of our assets must
be determined based on the market value of our Class A Ordinary Shares from time to time, which could cause the value of our
non-passive assets to be less than 50% of the value of all of our assets (including the cash raised in this offering) on any
particular quarterly testing date for purposes of the asset test.

Based on our operations and the composition
of our assets we do not expect to be treated