Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 50

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 50
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 or not successful, could harm our reputation and restrict our
ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant
damages, which could have a material adverse effect on our financial condition and results of operations.

  30  

If we are classified as a passive foreign investment
company, United States taxpayers who own our securities may have adverse United States federal income tax consequences.

We are a non-U. S. corporation
and, as such, we will be classified as a passive foreign investment company, which is known as a PFIC, for any taxable year if, for such
year, either

  At least 75% of our gross income for the year is passive income; or                                                                                                                                   
  The average percentage of our assets (determined at the end of each quarter) during the taxable year that produce passive income or that are held for the production of passive income is at leas...  

Passive income generally includes
dividends, interest, rents, royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains
from the disposition of passive assets.

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. taxpayer who holds our securities, the U. S.
taxpayer may be subject to increased U. S. federal income tax liability and may be subject to additional reporting requirements.

It is possible that for our current
taxable year or for any subsequent year more than 50% of our assets may be assets which produce passive income. We will make this determination
following the end of any particular tax year. We treat our affiliated entities as being owned by us for United States federal income tax
purposes, not only because we exercise effective control over the operation of such entities but also because we are entitled to substantially
all of their economic benefits, and, as a result, we consolidate their operating results in our consolidated financial statements. For
purposes of the PFIC analysis, in general, a non-U. S. corporation is deemed to own its pro rata share of the gross income and assets of
any entity in which it is considered to own at least 25% of the equity by value.

We are an emerging growth company within the
meaning of the Securities Act and may take advantage of certain reduced reporting requirements.

We are an “emerging growth
company