Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 85

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 10
Chunk 85
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 a realization event (i. e., not a transaction in which gain or loss is realized) or because the exercise is
treated as a recapitalization for U. S. federal income tax purposes. In either tax-free situation, a U. S. Holder’s basis in the
ordinary shares received would equal the holder’s basis in the warrants. If the cashless exercise were treated as not being a realization
event, a U. S. Holder’s holding period in the ordinary shares should be treated as commencing on the date following the date of
exercise of the warrants. If the cashless exercise were treated as a recapitalization, the holding period of the ordinary shares received
would include the holding period of the warrants. It is also possible that a cashless exercise could be treated as a taxable exchange
in which gain or loss would be recognized. In such event, a U. S. Holder could be deemed to have surrendered a number of warrants with
a fair market value equal to the exercise price for the number of warrants deemed exercised. For this purpose, the number of warrants
deemed exercised would be equal to the amount needed to receive on exercise the number of ordinary shares issued pursuant to the cashless
exercise. In this situation, the U. S. Holder would recognize capital gain or loss in an amount equal to the difference between the fair
market value of the warrants deemed surrendered to pay the exercise price and the U. S. Holder’s tax basis in the warrants deemed
surrendered. Such gain or loss would be long-term or short-term depending on the U. S. Holder’s holding period in the warrants.
In this case, a U. S. Holder’s tax basis in the ordinary shares received would equal the sum of the fair market value of the warrants
deemed surrendered and the U. S. Holder’s tax basis in the warrants deemed exercised. A U. S. Holder’s holding period for the
ordinary shares should commence on the date following the date of exercise of the warrants. There may also be alternative characterizations
of any such taxable exchange that would result in similar tax consequences, except that a U. S. Holder’s gain or loss would be short-term.
Due to the absence of authority on the U. S. federal income tax treatment of a cashless exercise, there can be no assurance which, if
any, of the alternative tax consequences described above would be adopted by the IRS or a court of law. Accordingly, U. S. Hold