Company: PMVC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043278
Chunk: 54

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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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 the excise tax
would depend on a number of factors, including (i) the fair market value of the redemptions and, (ii) the nature and amount of the equity,
and (iii) the content of regulations and other guidance from the U.S. Department of the Treasury. In addition, because the excise tax
would be payable by the Company, and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been
determined. The foregoing could cause a reduction in the cash available on hand to identify a potential business opportunity and/or complete
a transaction.

We filed a Form 25 with the SEC which became
effective October 21, 2022, to voluntarily delist our common stock and public warrants from the NYSE and our securities are now available
for limited quotation in the over-the-counter market and it is expected that any trading will be limited and sporadic