Company: PMVC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043278
Chunk: 119

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 centered on identifying a potential business opportunity and completing a transaction will subject us
to the Investment Company Act under the definition of “investment company” contained in Section (3)(a)(1)(A) thereof. By having
a business plan targeted at identifying a potential business opportunity and completing a transaction, we intend to avoid being deemed
an “investment company” within the meaning of the Investment Company Act.

However, we are aware of litigation against certain
entities asserting that, notwithstanding the foregoing, those entities should be considered investment companies and the SEC has suggested
that the extended period of investment of assets by similar such entities raise questions about their status as investment companies under
Section 3(a)(1)(A) of the Investment Company Act.

A new 1% U.S. federal excise tax could be
imposed on the Company in connection with redemptions.

On August 16, 2022, the Inflation Reduction Act
of 2022 (the “IRA”) was signed into federal law. The IRA provides for, among other things, a new U.S. federal 1% excise tax
on certain repurchases (including redemptions as defined in the Internal Revenue Code) of stock by publicly traded U.S. corporations and
certain U.S. subsidiaries of publicly traded non-U.S. corporations (each, a “covered corporation”). Because our securities
are publicly trading in the over-the-counter market, we may be deemed a “covered corporation” for this purpose. 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 apply to the excise tax. The U.S. Department
of Treasury has been given authority to provide regulations and other guidance to carry out, and prevent the abuse or avoidance of, the
excise tax. The IRA applies only to repurchases that occur after December 31, 2022.

Therefore, any redemption or other repurchase
that occurs after December 31, 2022, may be subject to the excise tax. Whether and to what extent we would be subject to