Company: BAYAU
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001641172-25-002125
Chunk: 57

Company: Bayview Acquisition Corp
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1
Chunk 57
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States corporation. If we acquire a domestic corporation, or engage in a transaction in which a United States corporation becomes our
parent or our affiliate, and because our securities are expected to trade on Nasdaq following the date of the Registration Statement,
we may be, or become, a “covered corporation” within the meaning of the Inflation Reduction Act, and while not free from
doubt, it is possible that the Excise Tax will apply to redemptions of our Ordinary Shares in connection with an initial business combination
after we become such a “covered corporation” to the extent such redemptions are treated as repurchases for purposes of the
Inflation Reduction Act (other than, pursuant to recently issued guidance from the U.S. Department of the Treasury, redemptions in complete
liquidation of the company). In all cases, the extent of the excise tax that may be incurred will depend on a number of factors, including
the fair market value of our shares redeemed, the extent such redemptions could be treated as dividends and not repurchases, and the
content of any regulations and other additional guidance from the U.S. Department of the Treasury that may be issued and applicable to
the redemptions.

Issuances
of stock by a repurchasing corporation in a year in which such corporation repurchases stock may reduce the amount of the Excise Tax
imposed with respect to such repurchase. The Excise Tax is imposed on the repurchasing corporation itself, not the stockholders from
which stock is repurchased. The imposition of the Excise Tax could, however, reduce the amount of cash available to the company (or the
cash contribution to the target business in connection with our initial business combination).

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For
these reasons, the value of your investment in our securities may decrease as a result of the Excise Tax in some circumstances. In addition,
the Excise Tax may make a transaction with us less appealing to potential business combination targets, and thus, potentially hinder
our ability to enter into and consummate an initial business combination.

We
may be a passive foreign investment company (“PFIC”), which could result in adverse U.S. federal income tax consequences
to U.S. investors.

If
we are a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder (as defined in the section
of the Registration Statement captioned “Taxation—United States Federal Income Tax Consider