Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 30

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 30
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 financial accounting standards
until such date that a private company is otherwise required to comply with such new or revised accounting standards. In other words,
an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise
apply to private companies. We have elected to take advantage of the extended transition period, although we have already adopted certain
new and revised accounting standards based on transition guidance permitted under such standards. As a result of this election, our future
financial statements may not be comparable to other public companies that comply with the public company effective dates for these new
or revised accounting standards.

If
we are classified as a passive foreign investment company, United States taxpayers who own our securities may have adverse United States
federal income tax consequences.

We
are a non-U. S. corporation and, as such, we will be classified as a passive foreign investment company, which is known as a PFIC, for
any taxable year if, for such year, either:

(a)
at least 75% of our gross income for the year is passive income; or

(b)
the average percentage of our assets (determined at the end of each quarter) during the taxable year that produced passive income or
that are held for the production of passive income is at least 50%.

Passive
income generally includes dividends, interest, rents, royalties (other than rents or royalties derived from the active conduct of a trade
or business) and gains from the disposition of passive assets.

If
we are a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U. S. taxpayer who holds our securities,
the U. S. taxpayer may be subject to increased U. S. federal income tax liability and may be subject to additional reporting requirements.

It
is possible that, for our current taxable year or for any subsequent year, more than 50% of our assets may be assets which produce passive
income. For purposes of the PFIC analysis, in general, a non-U. S. corporation is deemed to own its pro rata share of the gross income
and assets of any entity in which it is considered to own at least 25% of the equity by value.

  18  

We
are a foreign private issuer within the meaning of the Exchange Act, and as such we are exempt from certain provisions applicable to
United States domestic public companies.

Because
we are a foreign private issuer under the Exchange Act, we are exempt from certain