Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 333

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 333
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 royalties (other than rents or royalties derived from the active conduct of a
trade or business) and gains from the disposition of assets giving rise to passive
income.

Because we are a blank check company, with no current active business, we believe
that it is likely that we will meet the PFIC asset or income test for our current
taxable year. However, pursuant to a startup exception, a corporation will not be
a PFIC for the first taxable year the corporation has gross income (the “startup year”),
if (1) no predecessor of the corporation was a PFIC; (2) the corporation satisfies the IRS that it will not be a PFIC for either of the first
two taxable years following the startup year; and (3) the corporation is not in fact a PFIC for either of those years. The applicability of the startup exception to us is uncertain and will not
be known until after the close of our current taxable year and, perhaps, until after
the end of our two taxable years following our startup year. After the acquisition of a company or assets in
a business combination, we may still meet one of the PFIC tests depending on the timing
of the acquisition and the amount of our passive income and assets as well as the
passive income and assets of the acquired business. If the company that we acquire
in a business combination is a PFIC, then we will likely not qualify for the startup
exception and will be a PFIC for our current taxable year. Our actual PFIC status
for our current taxable year or any subsequent taxable year will not be determinable
until after the end of such taxable year (and, in the case of the startup exception
to our current taxable year, perhaps until after the end of our two taxable years following our startup year). Accordingly, there can be no assurance with respect
to our status as a PFIC for our current taxable year or any future taxable year. In
addition, our U.S. counsel expresses no opinion with respect to our PFIC status for our current or future
taxable years.

Although our PFIC
status is determined annually, an initial determination that our Company is a PFIC generally will apply for subsequent years to a U.S.
Holder who held Class A ordinary shares, rights, or warrants while we were a PFIC, whether or not we meet the test for PFIC status in
those subsequent years. If we are determined to be a PFIC for any taxable year (or