Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1562

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 1562
---
 have the authority to disallow
any tax savings, adjust the profits and losses of such potential future local entities and assess late payment interest and penalties.
A finding by the relevant tax authorities that we are ineligible for any such tax savings, or that any of our possible future affiliated
entities are not eligible for tax exemptions, would substantially increase our possible future taxes and thus reduce our net income and
the value of a shareholder’s investment. In addition, in the event that in connection with an acquisition of an offshore entity
that conducted its operations through affiliates in the PRC, the sellers of such entities failed to pay any taxes required under local
law, the relevant tax authorities could require us to withhold and pay the tax, together with late-payment interest and penalties. The
occurrence of any of the foregoing could have a negative impact on our operating results and financial condition.

If
the government of the PRC finds that the agreements we entered into to acquire control of a target business do not comply with local
governmental restrictions on foreign investment, or if these regulations or the interpretation of existing regulations change in the
future, we could be subject to significant penalties or be forced to relinquish our interests in those operations or we could be unable
to assert our contractual control rights over the assets of the post-combination target company, which could cause the value of our Ordinary
Shares depreciate significantly or become worthless.

The
PRC currently prohibits and/or restricts foreign ownership in certain “important industries,” including telecommunications,
food production and heavy equipment. There are uncertainties under certain regulations whether obtaining a majority interest through
contractual arrangements will comply with regulations prohibiting or restricting foreign ownership in certain industries. For example,
the PRC may apply restrictions in other industries in the future. In addition, there can be restrictions on the foreign ownership of
businesses that are determined from time to time to be in “important industries” that may affect the national economic security
or those having “famous brand names” or “well-established brand names.”

If
we or any of our potential future target businesses are found to be in violation of any existing or future local laws or regulations
(for example, if we are deemed to be holding equity interests in certain of our affiliated entities in which direct foreign ownership
is prohibited), the relevant regulatory authorities might have the discretion to:

    ●
    
    revoke
    the business and operating licenses of the potential future target business;

    ●
    
    confiscate
    relevant income and impose fines and other penalties;