Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1757

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1757
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 of our Initial Public Offering to finance our businesses and operations
and imposing conditions or requirements with which we or potential future target businesses may not be able to comply, and we could be
unable to assert our contractual control rights over the assets of the post-combination target company, which could cause the value of
our Ordinary Shares may depreciate significantly or become worthless. These agreements likely also would provide for increased ownership
or full ownership and control by us when and if permitted under local laws and regulations. If we choose to effect a Business Combination
that employs the use of these types of control arrangements, we may have difficulty in enforcing our rights. Therefore, these contractual
arrangements may not be as effective in providing us with the same economic benefits, accounting consolidation or control over a target
business as would direct ownership. For example, if the target business or any other entity fails to perform its obligations under these
contractual arrangements, we may have to incur substantial costs and expend substantial resources to enforce such arrangements, and rely
on legal remedies under local law, including seeking specific performance or injunctive relief, and claiming damages, which we cannot
assure will be sufficient to offset the cost of enforcement and may adversely affect the benefits we expect to receive from the business
combination..

PRC
regulations relating to offshore investment activities by PRC residents may limit our ability to inject capital in our Chinese subsidiaries
and Chinese subsidiaries’ ability to change their registered capital or distribute profits to us or otherwise expose us or our
PRC resident beneficial owners to liability and penalties under PRC laws.

In
July 2014, the State Administration of Foreign Exchange of the PRC, or SAFE promulgated the Circular on Relevant Issues Concerning Foreign
Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles,
or SAFE Circular 37. SAFE Circular 37 requires PRC residents (including PRC individuals and PRC corporate entities as well as foreign
individuals that are deemed as PRC residents for foreign exchange administration purpose) to register with SAFE or its local branches
in connection with their direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our shareholders who are
PRC residents and may be applicable to any offshore acquisitions that we make in the future. Under SAFE Circular 37, PRC residents who
make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose vehicles,
or SPVs, will be required to