Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 338

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 338
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 basis in its Class A ordinary shares. These amounts of ordinary income would not be eligible for the
favorable tax rates applicable to qualified dividend income or long-term capital gains. The U.S. Holder also will recognize an ordinary loss in respect of the excess, if any, of its
adjusted basis in its Class A ordinary shares over the fair market value of its Class A ordinary shares at the end of its taxable year (but only to the extent of the net
amount of previously included income as a result of the mark-to-market election).
The U.S. Holder’s basis in its Class A ordinary shares will be adjusted to reflect any such income or loss amounts, and
any further gain recognized on a sale or other taxable disposition of its Class A ordinary shares will be treated as ordinary income. Currently, a mark-to-market election may not be made with respect to warrants. The mark-to-market election is available only for stock that is regularly traded on a national securities
exchange that is registered with the Securities and Exchange Commission, including
the Nasdaq Capital Market LLC (on which we intend to list the Class A ordinary shares), or on a foreign exchange or market that the IRS determines has
rules sufficient to ensure that the market price represents a legitimate and sound
fair market value. If made, a mark-to-market election would be effective for the taxable year for which the election was made and
for all subsequent taxable years unless the Class A ordinary shares ceased to qualify as “marketable stock” for purposes of the PFIC
rules or the IRS consented to the revocation of the election. U.S. Holders are urged to consult their own tax advisors regarding the availability and
tax consequences of a mark-to-market election in respect to our Class A ordinary shares under their particular circumstances.

If we are a PFIC and, at any time, have a foreign subsidiary that is classified as
a PFIC, U.S. Holders generally would be deemed to own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest charge
described above if we receive a distribution from, or dispose of all or part of our
interest in, the lower-tier PFIC or the U.S. Holders otherwise were deemed to have disposed of an interest in the lower-tier PFIC. Upon written request, we will endeavor to cause any lower-tier PFIC to provide to a U.S. Holder the information that may be required to make or maintain a QEF election with
respect to