Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 148

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 6
Chunk 148
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 the mark-to-market election on a qualified exchange. If the Common Shares were not regularly traded on the NASDAQ or were delisted
from the NASDAQ and were not traded on another qualified exchange for the requisite time period described above, the mark-to-market election
would not be available.

A
U. S. Holder that makes a mark-to-market election must include in gross income, as ordinary income, for each taxable year an amount equal
to the excess, if any, of the fair market value of the U. S. Holder’s Common Shares at the close of the taxable year over the U. S.
Holder’s adjusted tax basis in the Common Shares. An electing U. S. Holder may also claim an ordinary loss deduction for the excess,
if any, of the U. S. Holder’s adjusted tax basis in the Common Shares over the fair market value of the Common Shares at the close
of the taxable year, but this deduction is allowable only to the extent of any net mark-to-market gains previously included in income.
A U. S. Holder that makes a mark-to-market election generally will adjust such U. S. Holder’s tax basis in the Common Shares to reflect
the amount included in gross income or allowed as a deduction because of such mark-to-market election. Gains from an actual sale or other
disposition of the Common Shares will be treated as ordinary income, and any losses incurred on a sale or other disposition of the Common
Shares will be treated as ordinary losses to the extent of any net mark-to-market gains previously included in income.

If
the Company is classified as a PFIC for any taxable year in which a U. S. Holder owns Common Shares but before a mark-to-market election
is made, the adverse PFIC rules described above will apply to any mark-to-market gain recognized in the year the election is made. Otherwise,
a mark-to-market election will be effective for the taxable year for which the election is made and all subsequent taxable years. The
election cannot be revoked without the consent of the IRS unless the Common Shares cease to be marketable, in which case the election
is automatically terminated.

If
the Company is classified as a PFIC, a U. S. Holder of Common Shares will generally be treated as owning stock owned by the Company in
any direct or indirect subsidiaries that are also PFICs and will be subject to similar adverse rules with respect to distributions to
the Company by, and dispositions by the Company of, the stock of such