Company: PMVC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107610
Chunk: 264

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 4
Chunk 264
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 Company Act.

However,
we are aware of litigation against certain entities asserting that, notwithstanding the foregoing, those entities should be considered
investment companies and the SEC has suggested that the extended period of investment of assets by similar such entities raise questions
about their status as investment companies under Section 3(a)(1)(A) of the Investment Company Act.

A
new 1% U.S. federal excise tax could be imposed on the Company in connection with redemptions.

On
August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into federal law. The IRA provides for, among
other things, a new U.S. federal 1% excise tax on certain repurchases (including redemptions as defined in the Internal Revenue Code)
of stock by publicly traded U.S. corporations and certain U.S. subsidiaries of publicly traded non-U.S. corporations (each, a “covered
corporation”). Because our securities are publicly trading in the over-the-counter market, we may be deemed a “covered corporation”
for this purpose. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased.
The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However,
for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock
issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the
excise tax. The U.S. Department of Treasury has been given authority to provide regulations and other guidance to carry out, and prevent
the abuse or avoidance of, the excise tax. The IRA applies only to repurchases that occur after December 31, 2022.

Therefore,
any redemption or other repurchase that occurs after December 31, 2022, may be subject to the excise tax. Whether and to what extent
we would be subject to the excise tax would depend on a number of factors, including (i) the fair market value of the redemptions and,
(ii) the nature and amount of the equity, and (iii) the content of regulations and other guidance from the U.S. Department of the Treasury.
In addition, because the excise tax would be payable by the Company, and not by the redeeming holder, the