Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 215

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 215
---
 taxable year and any
period prior to the first day of the first taxable year in which we were a PFIC would be taxed as ordinary income; and (3) the amount
allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of
taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable
to each such other taxable year. Distributions received by a U. S. Holder in a taxable year that are greater than 125% of the average
annual distributions received during the shorter of the three preceding taxable years or the U. S. Holder’s holding period for the
Common Shares will be treated as excess distributions. Indirect investments in a PFIC may also be subject to these special U. S. federal
income tax rules.

As an alternative to the foregoing rules, a U. S.
Holder may make a mark-to-market election with respect to the Common Shares, provided such Common Shares are treated as “marketable
stock.” The Common Shares generally will be treated as marketable stock if they are regularly traded on a “qualified exchange
or other market,” as defined in applicable U. S. Treasury regulations. The Common Shares will be marketable stock as long as they
remain listed on Nasdaq, which is a qualified exchange for this purpose, and are regularly traded.

If a U. S. Holder makes a valid mark-to-market
election with respect to the Common Shares, the holder generally will (i) include as ordinary income for each taxable year that we are
a PFIC the excess, if any, of the fair market value of Common Shares held at the end of the taxable year over the adjusted tax basis
of such Common Shares and (ii) deduct as an ordinary loss in each such taxable year the excess, if any, of the adjusted tax basis of
the Common Shares over the fair market value of such Common Shares held at the end of the taxable year, but such deduction will only
be allowed to the extent of the net amount previously included in income as a result of the mark-to- market election. The U. S. Holder’s
adjusted tax basis in the Common Shares would be adjusted to reflect any income or loss resulting from the mark-to-market election. If
a U. S. Holder makes a mark-to-market election in respect of the Common Shares and we cease to be classified as a PFIC, the holder will