Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 216

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 216
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not be required to take into account the gain or loss described above during any period that we are not classified as a PFIC. If a U. S.
Holder makes a mark-to-market election, any gain such U. S. Holder recognizes upon the sale or other disposition of the Common Shares
in a year when we are a PFIC will be treated as ordinary income and any loss will be treated as ordinary loss, but such loss will only
be treated as ordinary loss to the extent of the net amount previously included in income as a result of the mark-to-market election.

If we are determined to be a PFIC, we do not intend
to provide the information necessary for a U. S. Holder to make a qualified electing fund, or QEF, election with respect to the Common
Shares which, if available, would result in a tax treatment different from (and generally less adverse than) the general tax treatment
for PFICs.

A U. S. Holder that owns (or is deemed to own)
shares in a PFIC during any taxable year of the U. S. Holder generally is required to file an IRS Form 8621 with such U. S. Holder’s
U. S. federal income tax return and provide such other information as the IRS may require. Failure to file IRS Form 8621 for each applicable
taxable year may result in substantial penalties and the statute of limitations on the assessment and collection of U. S. federal income
taxes of such U. S. Holder for the related taxable year may not close until three years after the date on which the required information
is filed.

The rules dealing with PFICs are very complex
and are affected by various factors in addition to those described above. Accordingly, U. S. Holders of Common Shares are urged to consult
their tax advisors concerning the application of the PFIC rules to their Common Shares under their particular circumstances.

Additional Reporting Requirements

Certain U. S. Holders holding specified foreign
financial assets with an aggregate value in excess of the applicable dollar thresholds are required to report information to the IRS
relating to such assets, subject to certain exceptions (including an exception for specified foreign financial assets held in accounts
maintained by U. S. financial institutions), by attaching a complete IRS Form 8938 to their tax return, for each year in which they hold
such assets. Failure to file IRS Form 8938 for each applicable taxable year may result in substantial penalties and the statute of