Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 209

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 209
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 or business). Cash and cash equivalents are likely passive assets. The value of goodwill will generally be treated as an active or passive asset based on the nature of the income produced in the activity to which the goodwill is attributable. For purposes of the PFIC rules, a non-U.S. corporation that owns, directly or indirectly, at least 25% by value of the stock of another corporation is treated as if it held its proportionate share of the assets of the other corporation, and directly received its proportionate share of the income of the other corporation.

Pursuant to the start-up exception, a corporation will not be a PFIC for the first taxable year the corporation has gross income (the “ start-up year”), if (1) no predecessor of the corporation was a PFIC, (2) it is established to the satisfaction of the IRS that the corporation will not be a PFIC for either of the first two taxable years following the start-up year, and (3) the corporation is not in fact a PFIC for either of those years (the “ start-up exception”). AlphaTime believes that it did not qualify for the start-up exception for its taxable year ended December 31, 2021. Therefore, because AlphaTime is a blank-check company with no current active business, based on the composition of AlphaTime’s income and assets, AlphaTime believes that it was a PFIC for its taxable years ended December 31, 2021, December 31, 2022 and December 31, 2023.

Furthermore, the PFIC status of AlphaTime may affect the PFIC status of PubCo for PubCo’s taxable year ending December 31, 2024 because PubCo should be treated as the same corporation as AlphaTime for purposes of the PFIC rules. Depending on the closing date of the Business Combination and the composition of PubCo’s income and assets and the estimated value of PubCo’s assets, including goodwill, PubCo may be a PFIC for its taxable year ending December 31, 2024. PubCo’s PFIC status for any taxable year is a factual annual determination that can be made only after the end of that year and will depend on the composition of PubCo’s income and assets and the value of its assets from time to time (including the value of its goodwill, which may be determined in large part by reference to the market price of the PubCo Ordinary Shares from time to time, which could be volatile) and, for the taxable year in which the Business