Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 87

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 87
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 income and the nature, composition and value of our assets (which, assuming we are not a “controlled foreign
corporation,” or a CFC, under Section 957(a) of the Internal Revenue Code of 1986, as amended, or the Code, for the year being tested,
may be determined based on the fair market value of each asset, with the value of goodwill and going concern value determined in large
part by reference to the market value of our Common Shares, which may be volatile). Based upon the estimated value of our assets, including
any goodwill, and the nature and estimated composition of our income and assets, we may be classified as a PFIC for the taxable year ended
October 31, 2024 and in future taxable years. In particular, so long as we do not generate revenue from operations for any taxable year
and do not receive any research and development grants, or even if we receive a research and development grant, if such grant does not
constitute gross income for United States federal income tax purposes, we likely will be classified as a PFIC for such taxable year. Because
the determination of whether we are a PFIC for any taxable year is a factual determination made annually after the end of each taxable
year, there can be no assurance that we will not be considered a PFIC in any taxable year.

The tax consequences that would apply if we are
classified as a PFIC would also be different from those described above if a U. S. shareholder were able to make a valid qualified electing
fund, or QEF, election. At this time, we do not expect to provide U. S. shareholders with the information necessary for a U. S. shareholder
to make a QEF election. Prospective investors should assume that a QEF election will not be available.

If a United States person is treated as owning at least 10% of our
shares, such holder may be subject to adverse U. S. federal income tax consequences.

If a United States person is treated as owning
(directly, indirectly or constructively) at least 10% of the value or voting power of our shares, such person may be treated as a “ United
States shareholder” with respect to each “controlled foreign corporation” in our group (if any). Because our group includes
one or more U. S. subsidiaries, we expect that certain of our non-U. S. subsidiaries will be treated as controlled foreign corporations
(regardless of whether we