Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 94

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 94
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 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 ordinary shares or ADSs will be treated as excess distributions. In addition, when shares of a PFIC are acquired
by reason of death from a decedent that was a U. S. Holder, the tax basis of such shares would not receive a step-up to fair market value
as of the date of the decedent’s death, but instead would be equal to the decedent’s basis if lower, unless all gain were
recognized by the decedent. Indirect investments in a PFIC may also be subject to these special U. S. federal income tax rules.

We may invest in the equity
of foreign corporations that are PFICs or may own subsidiaries that are PFICs (any such entity, a “lower-tier PFIC”). If we
are classified as a PFIC, under attribution rules, U. S. Holders will be subject to the PFIC rules with respect to their indirect ownership
interests in such lower-tier PFICs, such that a disposition by us of the shares of the lower-tier PFIC or receipt by us of a distribution
from the lower-tier PFIC generally will be treated as a deemed disposition of such shares or the deemed receipt of such distribution by
the U. S. Holder, subject to taxation under the PFIC rules even though the U. S. Holder does not receive any proceeds from those dispositions
or distributions. There can be no assurance that a U. S. Holder will be able to make a QEF election with respect to any lower-tier PFICs
in which we invest. U. S. Holders are urged to consult their tax advisors about the application of the PFIC rules to an investment by us
in a lower-tier PFIC.

The PFIC rules described above
would not apply to a U. S. Holder who makes a qualified electing fund, or QEF election for all taxable years that such U. S. Holder has
held the ordinary shares or ADSs while we are a PFIC, provided that we comply with specified reporting requirements. Instead, each U. S.
Holder who has made such a QEF election is required for each taxable year that we are a PFIC to include in income such U. S. Holder’s
pro rata share of our ordinary earnings as