Company: ATMCW
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004801
Chunk: 1574

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 1574
---
 for data security. After the Data Security Law takes effect, if our post-combination entity’s data processing
activities were found to be not in compliance with this law, our post-combination entity could be ordered to make corrections, and under
certain serious circumstances, such as severe data divulgence, we and post-combination entity could be subject to penalties, including
the revocation of our business licenses or other permits. As a result, we and post-combination entity may be required to suspend our
relevant businesses, shut down our website, take down our operating applications, or face other penalties, which may materially and adversely
affect our business, financial condition, and results of operations.

If
we make equity compensation grants to persons who are PRC citizens, they may be required to register with the State Administration of
Foreign Exchange of the PRC (“SAFE”). We may also face regulatory uncertainties that could restrict our ability to adopt
equity compensation plans for our directors and employees and other parties under PRC laws.

On
April 6, 2007, SAFE issued the “Operating Procedures for Administration of Domestic Individuals Participating in the Employee Stock
Ownership Plan or Stock Option Plan of An Overseas Listed Company, also known as “Circular 78.” It is not clear whether Circular
78 covers all forms of equity compensation plans or only those which provide for the granting of shares options. For any plans which
are so covered and are adopted by a non-PRC listed company, such as our company, after April 6, 2007, Circular 78 requires all participants
who are PRC citizens to register with and obtain approvals from SAFE prior to their participation in the plan. In addition, Circular
78 also requires PRC citizens to register with SAFE and make the necessary applications and filings if they participated in an overseas
listed company’s covered equity compensation plan prior to April 6, 2007. We believe that the registration and approval requirements
contemplated in Circular 78 will be burdensome and time consuming.

Upon
consummation of business combination with a target business with primary operations in PRC, we may adopt an equity incentive plan and
make shares option grants under the plan to our officers, directors and employees, whom may be PRC citizens and be required to register
with SAFE. If it is determined that any of our equity compensation plans are subject to Circular 78, failure to comply with such provisions
may subject us and participants of our equity incentive