Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 149

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 6
Chunk 149
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 subsidiaries. A mark-to-market election is not permitted for the
shares of any subsidiary of the Company that is also classified as a PFIC. U. S. Holders should consult their tax advisors regarding the
availability of, and procedure for making, a mark-to-market election.

  100  

In
some cases, a shareholder of a PFIC can avoid the interest charge and the other adverse PFIC consequences described above by making a
QEF election to be taxed currently on its share of the PFIC’s undistributed income. We will endeavor to satisfy the record keeping
requirements that apply to a QEF and to supply requesting U. S. Holders with the information that such U. S. Holders are required to report
under the QEF rules. However, there can be no assurance that the Company will satisfy the record keeping requirements or provide the
information required to be reported by U. S. Holders.

A
U. S. Holder that makes a timely and effective QEF election for the first tax year in which its holding period of its Common Shares begins
generally will not be subject to the adverse PFIC consequences described above with respect to its Common Shares. Rather, a U. S. Holder
that makes a timely and effective QEF election will be subject to U. S. federal income tax on such U. S. Holder’s pro rata share
of (a) the Company’s net capital gain, which will be taxed as long-term capital gain to such U. S. Holder, and (b) the Company’s
ordinary earnings, which will be taxed as ordinary income to such U. S. Holder, in each case regardless of which such amounts are actually
distributed to the U. S. Holder by the Company. Generally, “net capital gain” is the excess of (i) net long-term capital gain
over (ii) net short-term capital loss, and “ordinary earnings” are the excess of (A) “earnings and profits” over
(B) net capital gain.

A
U. S. Holder that makes a timely and effective QEF election with respect to the Company generally (a) may receive a tax-free distribution
from us to the extent that such distribution represents “earnings and profits” that were previously included in income by
the U. S. Holder because of such QEF election and (b) will adjust such U. S. Holder’s tax basis in the Common Shares to reflect the
amount included in income