Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 89

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 10
Chunk 89
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 in this offering. Under circumstances where our revenue from activities that produce passive income significantly
increase relative to our revenue from activities that produce non-passive income, or where we determine not to deploy significant amounts
of cash for active purposes, our risk of becoming classified as a PFIC may substantially increase. In addition, because there are uncertainties
in the application of the relevant rules, it is possible that the Internal Revenue Service may challenge our classification of certain
income and assets as non-passive or our valuation of our tangible and intangible assets, each of which may result in our becoming a PFIC
for the current or subsequent taxable years. If we were classified as a PFIC for any year during which a U. S. Holder held our Class A
Ordinary Shares, we generally would continue to be treated as a PFIC for all succeeding years during which such U. S. Holder held our
Class A Ordinary Shares even if we cease to be a PFIC in subsequent years, unless certain elections are made.

If
we are classified as a PFIC for any taxable year during which a U. S. Holder holds our Class A 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 that have a penalizing
effect, regardless of whether we remain a PFIC, on (i) any excess distribution that we make to the U. S. Holder (which generally means
any distribution paid during a taxable year to a U. S. Holder that is greater than 125 percent of the average annual distributions paid
in the three preceding taxable years or, if shorter, the U. S. Holder’s holding period for the Class A Ordinary Shares), and (ii)
any gain realized on the sale or other disposition of ordinary shares. Under these rules,

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If
we are treated as a PFIC for any taxable year during which a U. S. Holder holds our Class A Ordinary Shares, or if any of our subsidiaries
is also a PFIC, such U. S. Holder would be treated as owning a proportionate amount (by value) of the shares of any lower-tier PFICs for
purposes of the application of these rules. U. S. Holders are urged to consult their tax advisors regarding the application of the PFIC
rules to any of