Company: PAII-WT
Filing Date: 2025-06-27
Form Type: S-1
Source: 0001213900-25-059054
Chunk: 333

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-06-27
Form: S-1
Chunk 333
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 such shares for such taxable year. If the U.S. Holder makes a valid mark -to -marketelection for the first taxable year of the U.S. Holder in which the U.S. Holder holds (or is deemed to hold) Class A ordinary shares in us and for which we are determined to be a PFIC, such U.S. Holder generally will not be subject to the excess distribution rules described above with respect to its Class A ordinary shares. Instead, in general, the U.S. Holder will include as ordinary income in each taxable year the excess, if any, of the fair market value of its Class A ordinary shares at the end of its taxable year over its adjusted basis in its Class A ordinary shares. These amounts of ordinary income would not be eligible for the favorable tax rates applicable to qualified dividend income or long -termcapital gains. The U.S. Holder also will recognize an ordinary loss in respect of the excess, if any, of its adjusted basis in its Class A ordinary shares over the fair market value of its Class A ordinary shares at the end of its taxable year (but only to the extent of the net amount of previously included income as a result of the mark -to -marketelection). The U.S. Holder’s basis in its Class A ordinary shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized by such U.S. Holder on a sale or other taxable disposition of its Class A ordinary shares will be treated as ordinary income, and any further loss recognized on the sale or other disposition of its Class A ordinary shares will be treated as ordinary loss (but only to the extent of the net mark -to -marketgains previously included by the U.S. Holder as a result of the mark -to -marketelection, and any loss in excess of such prior inclusions generally would be treated as capital loss). Under current law, a mark -to -marketelection may not be made with respect to warrants. The mark -to -marketelection is available only for stock or share capital that is regularly traded on a national securities exchange that is registered with the Securities and Exchange Commission, including the NYSE (on which we intend to list the Class A ordinary shares), or on a foreign exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. If made, a mark -to -marketelection would be effective for the taxable year for which the election was made and for all subsequent