Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 150

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 10
Chunk 150
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 or loss.

  91  

Passive
Foreign Investment Company Considerations

For United
States federal income tax purposes, a non-United States corporation, such as our Company, will be treated as a “passive foreign
investment company,” or “ PFIC” if, in the case of any particular taxable year, either (a) 75% or more of our gross income
for such year consists of certain types of “passive” income or (b) 50% or more of the value of our assets (generally determined
on the basis of a quarterly average) during such year produce or are held for the production of passive income. Based upon our current
and expected income and assets (including goodwill and taking into account the proceeds raised from the IPO) and the expected market price
of our Ordinary Shares following the IPO, we do not expect to be a PFIC for the current taxable year or the foreseeable future.

However,
while we do not expect to be or become a PFIC, no assurance can be given in this regard because the determination of whether we are or
will become a PFIC for any taxable year is a fact-intensive inquiry made annually that depends, in part, upon the composition and classification
of our income and assets. Fluctuations in the market price of our Ordinary Shares may cause us to be or become a PFIC for the current
or subsequent taxable years because the value of our assets for the purpose of the asset test, including the value of our goodwill and
other unbooked intangibles, may be determined by reference to the market price of our Ordinary Shares (which may be volatile). The composition
of our income and assets may also be affected by how, and how quickly, we use our liquid assets and the cash raised in our IPO. It is
also possible that the Internal Revenue Service may challenge our classification of certain income or assets for purposes of the analysis
set forth in subparagraphs (a) and (b), above or the valuation of our goodwill and other unbooked intangibles, which may result in our
company being or becoming a PFIC for the current or future taxable years.

If we
are classified as a PFIC for any taxable year during which a U. S. Holder holds our Ordinary Shares, and unless the U. S. Holder makes a
mark-to-market election (as described below), the U. S. Holder will generally be subject to special tax rules on (i) any excess distribution
that we