Company: MYND
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001628280-25-014832
Chunk: 69

Company: Mynd.ai, Inc.
Filing Date: 2025-03-26
Form: 20-F
Item: Item 10
Chunk 69
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 and such U. S. Holder makes a mark-to-market election as discussed below. Distributions a U. S. Holder receives in a taxable year that are greater than 125% of the average annual distributions such U. S. Holder received during the shorter of the three preceding taxable years or the U. S. Holder’s holding period for the securities will be treated as an excess distribution. Under these special tax rules:

• the excess distribution or gain will be allocated ratably over a U. S. Holder’s holding period for the securities;

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• the amount allocated to the taxable year of disposition, and any taxable year prior to the first taxable year in which we became a PFIC, will be treated as ordinary income; and

• the amount allocated to each other year will be subject to the highest tax rate in effect for that year for individuals or corporations, as appropriate, and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

The tax liability for amounts allocated to years prior to the year of disposition or “excess distribution” cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of the securities cannot be treated as capital, even if a U. S. Holder holds the securities as capital assets.

If we are a PFIC, a U. S. Holder will generally be subject to similar rules with respect to distributions we receive from, and our dispositions of the capital stock of, any of our direct or indirect subsidiaries that also are PFICs, as if such distributions were indirectly received by, and/or dispositions were indirectly carried out by, such U. S. Holder. U. S. Holders should consult their tax advisors regarding the application of the PFIC rules to our subsidiaries.

Certain elections exist that may alleviate some of the adverse consequences of PFIC status and would result in an alternative treatment of the securities. A U. S. Holder may avoid the general tax treatment for PFICs described above by electing to treat us as a “qualified electing fund” under Section 1295 of the Code (a “ QEF,” and such election, a “QEF Election”) for each of the taxable years during the U. S. Holder’s holding period that we are a PFIC. If a QEF Election is not in effect for the first taxable year in the U. S. Holder’s holding period in which we are a PFIC