Company: RGNT
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006676
Chunk: 78

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 78
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 federal income tax purposes in any taxable year in
which either (1) at least 75% of our gross income is “passive income” or (2) on quarterly average at least 50% of our
assets by value produce passive income or are held for the production of passive income. Passive income for this purpose generally
includes, among other things, certain dividends, interest, royalties, rents and gains from commodities and securities transactions
and from the sale or exchange of property that gives rise to passive income. Passive income also includes amounts derived by reason
of the temporary investment of funds, including those raised in a public offering. In determining whether a non-U.S. corporation is
a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25%
interest (by value) is taken into account. The tests for determining PFIC status are applied annually and it is difficult to make
accurate projections of future income and assets which are relevant to this determination. In addition, our PFIC status may depend
in part on the market value of our Ordinary Shares. Accordingly, there can be no assurance that we currently are not or will not
become a PFIC in the future. If we are a PFIC in any taxable year during which a U.S. taxpayer holds our Equity Securities (as
defined below), such U.S. taxpayer would be subject to certain adverse U.S. federal income tax rules. In particular, if the U.S.
taxpayer did not make an election to treat us as a “qualified electing fund”, or QEF, or make a
“mark-to-market” election, then “excess distributions” to the U.S. taxpayer, and any gain realized on the
sale or other disposition of our Ordinary Shares by the U.S. taxpayer: (1) would be allocated ratably over the U.S. taxpayer’s
holding period for our Ordinary Shares; (2) the amount allocated to the current taxable year and any period prior to the first day
of the first taxable year in which we were a PFIC would be taxed as ordinary income; and (3) the amount allocated to each of the
other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year,
and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such
other taxable year. In addition