Company: ATMCW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011749
Chunk: 11

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 8
Chunk 11
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 exempted company (“HCYC”). Pursuant to the Merger Agreement, the parties thereto will enter into a
business combination transaction by which (i) the Company will merge with and into Merger Sub 1, with the Company surviving such merger;
(ii) the Company will merge with and into Merger Sub 2, with Merger Sub 2 surviving such merger; and (iii) HCYC will merge with and into
Merger Sub 3, with HCYC surviving such merger (collectively, the “Mergers”). The Merger Agreement and the Mergers were unanimously
approved by the boards of directors of each of the Company and HCYC. The Business Combination is expected to be consummated after obtaining
the required approval by the shareholders of the Company and HCYC and the satisfaction of certain other customary closing conditions.

    F-9

Risks and Uncertainties

Management is currently evaluating the impact of the
risk of bank failures and has concluded that while it is reasonably possible that the bank failures could have a negative effect on the
Company’s financial position, results of its operations, and/or search for a target company, the specific impact is not readily
determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from
the outcome of this uncertainty. Further, the Company doesn’t have any bank accounts which are associated with failure risk but
will keep monitoring any such effects that might impact the company’s financial position.

On August 16, 2022, the Inflation Reduction Act of
2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise
tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded
foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its
shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased
at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the
fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition,
certain exceptions