Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1754

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1754
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 the PRC, a substantial portion of our operations may be conducted
in the PRC, and a significant portion of our net revenues maybe derived from customers where the contracting entity is located in the
PRC. Accordingly, our business, financial condition, results of operations, prospects and certain transactions we may undertake may be
subject, to a significant extent, to economic, political and governmental and legal developments, laws and regulations in the PRC. For
instance, all or most of our material agreements may be governed by PRC law and we may have difficulty in enforcing our legal rights
because the system of laws and the enforcement of existing laws in PRC may not be as certain in implementation and interpretation as
in the United States. In addition, contractual arrangements we enter into with potential future subsidiaries and affiliated entities
or acquisitions of offshore entities that conduct operations through affiliates in the PRC may be subject to a high level of scrutiny
by the relevant PRC tax authorities. We may also be subject to restrictions on dividend payments after we consummate a Business Combination
and if we rely on dividends and other distributions from our operating company to provide us with cash flow and to meet our other obligations.

44

Contractual
arrangements we enter into with potential future subsidiaries and affiliated entities or acquisitions of offshore entities that conduct
operations through affiliates in the PRC may be subject to a high level of scrutiny by the relevant tax authorities.

Under
the laws of the PRC, arrangements and transactions among related parties may be subject to audit or challenge by the relevant tax authorities.
If any of the transactions we enter into with potential future subsidiaries and affiliated entities are found not to be on an arm’s-length
basis, or to result in an unreasonable reduction in tax under local law, the relevant tax authorities may 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