Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 233

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 233
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25% of the shares by value,
are held for the production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties
(other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets.

Because we are a blank check company, with no current
active business, we believe that it is likely that we will meet the PFIC asset or income test for our current taxable year. However,
pursuant to a startup exception, a corporation will not be a PFIC for the first taxable year the corporation has gross income (the “startup
year”), if (1) no predecessor of the corporation was a PFIC; (2) the corporation satisfies the IRS that it will not be a PFIC for
either of the first two taxable years following the startup year; and (3) the corporation is not in fact a PFIC for either of those years.
The applicability of the startup exception to us will not be known until after the close of our current taxable year and, perhaps, until
after the close of the first two taxable years following our current taxable year. Further, after the acquisition of a company or assets
in a business combination, we may still meet one of the PFIC tests depending on the timing of the acquisition and the amount of our passive
income and assets as well as the passive income and assets of the acquired business. If the company that we acquire in a business combination
is a PFIC, then we will likely not qualify for the startup exception and will be a PFIC for our current taxable year. Our actual PFIC
status for our current taxable year or any subsequent taxable year will not be determinable until after the end of such taxable year.
Accordingly, there can be no assurance with respect to our status as a PFIC for our current taxable year or any future taxable year.

Although our PFIC status is determined annually,
an initial determination that our company is a PFIC will generally apply for subsequent years to a U.S. Holder who held ordinary shares
or rights while we were a PFIC, whether or not we meet the test for PFIC status in those subsequent years. If we are determined to be
a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of our Securities and, in the
case of our ordinary share, the U.S. Holder did not make either a timely qualified electing fund (“