Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 38

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 3
Chunk 38
---
 of our assets, including goodwill, we do not expect to be a PFIC for our current taxable
year. However, the proper application of the PFIC rules to a company with a business such as ours is not entirely clear. Because the proper
characterization of certain components of our income and assets is not entirely clear, and because our PFIC status for any taxable year
will depend on the composition of our income and assets and the value of our assets from time to time (which may be determined, in part,
by reference to the market price of our ordinary shares, which could be volatile), there can be no assurance that we will not be a PFIC
for our current taxable year or any future taxable year.

If we were a PFIC for
any taxable year during which a U. S. investor holds ordinary shares, certain adverse U. S. federal income tax consequences could apply
to such U. S. investor.

General Risk Factors

We may have difficulty scaling and adapting
our existing infrastructure to accommodate a larger customer base, technology advances or customer requirements.

In the future, advances in technology, increases
in traffic, and new customer requirements may require us to change our infrastructure, expand our infrastructure or replace our infrastructure
entirely. Scaling and adapting our infrastructure are likely to be complex and require additional technical expertise. If we are required
to make any changes to our infrastructure, we may incur substantial costs and experience delays or interruptions in our service. These
delays or interruptions may cause customers to become dissatisfied with our service and move to competing service providers. Our failure
to accommodate increased traffic, increased costs, inefficiencies or failures to adapt to new technologies or customer requirements and
the associated adjustments to our infrastructure could harm our business, financial condition and results of operations.

Adverse developments in general business
and economic conditions as well as conditions in the global capital market could have an adverse effect on the demand for the Company’s
services, the business, and the financial condition and results of operations of the Company and its customers.

Another economic or financial crisis or rapid
decline of the consumer economy, significant concerns over energy costs, geopolitical issues, including the ongoing conflict between Ukraine
and Russia, recent events in the Middle East, recent trade disputes between the U. S. and other countries resulting in the imposition of
increased tariffs on products imported into the U. S., and the availability and cost of credit can contribute to increased volatility,
diminished expectations for the economy and the markets, and