Company: IMNN
Filing Date: 2025-04-04
Form Type: S-1
Source: 0001641172-25-002783
Chunk: 46

Company: Imunon, Inc.
Filing Date: 2025-04-04
Form: S-1
Chunk 46
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 tax basis in the Common Stock or common warrants disposed of. Long-term capital gains recognized by non-corporate U.S. Holders will be subject to reduced tax rates. The deductibility of capital losses is subject to limitations. U.S. Holders who realize losses with respect to a disposition of our Common Stock or common warrants should consult their own tax advisors regarding the tax treatment of such losses.

Exercise or Expiration of Common Warrants or Pre-Funded Warrants

In general, a U.S. Holder will not be required to recognize income, gain or loss upon the exercise of a common warrant or pre-funded warrant by payment of the exercise price, except to the extent of cash paid in lieu of a fractional share (which fractional share is generally treated as received and then exchanged for cash). A U.S. Holder’s tax basis in a share of Common Stock received upon exercise will be equal to the sum of (1) the U.S. Holder’s tax basis in the common warrant or pre-funded warrant (except to the extent of any tax basis allocated to a fractional share for which a cash payment is received) and (2) the exercise price of the common warrant or pre-funded warrant.

A U.S. Holder’s holding period in the Common Stock received upon exercise of a common warrant will generally commence on the day after such U.S. Holder exercises the common warrant. Assuming a pre-funded warrant is treated as our Common Stock, a U.S. Holder’s holding period in the stock received upon exercise of a pre-funded warrant will generally include such holder’s holding period in the pre-funded warrant exchanged therefor.

No discussion is provided herein regarding the U.S. federal income tax treatment on the exercise of a common warrant or a pre-funded warrant on a cashless basis, and U.S. Holders are urged to consult their tax advisors as to the exercise of a warrant on a cashless basis.

If a common warrant expires without being exercised, a U.S. Holder will recognize a capital loss in an amount equal to such U.S. Holder’s tax basis in the common warrant. This loss will be long-term capital loss if, at the time of the expiration, the U.S. Holder’s holding period in the common warrant is more than one year. The deductibility of capital losses is subject to limitations.

Information Reporting and Backup Withholding

Information returns may be filed with the IRS in connection with distributions on Common Stock or constructive dividends on common warrants and pre-funded warrants, and the proceeds of a sale or other disposition of Common Stock or