Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 147

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 6
Chunk 147
---
 PFIC status.

If
the Company is classified as a PFIC for any taxable year during which a U. S. Holder owns Common Shares, the U. S. Holder, absent certain
elections (including the mark-to-market and QEF elections described below), will generally be subject to adverse rules (regardless of
whether the Company continues to be classified as a PFIC) with respect to (i) any “excess distributions” (generally, any
distributions received by the U. S. Holder on the Common Shares in a taxable year that are greater than 125% of the average annual distributions
received by the U. S. Holder in the three preceding taxable years or, if shorter, the U. S. Holder’s holding period for the Common
Shares) and (ii) any gain realized on the sale or other disposition of the Common Shares.

Under
these adverse rules (a) the excess distribution or gain will be allocated ratably over the U. S. Holder’s holding period, (b) the
amount allocated to the current taxable year and any taxable year prior to the first taxable year in which the Company is classified
as a PFIC will be taxed as ordinary income and (c) the amount allocated to each of the other taxable years during which the Company was
classified as a PFIC will be subject to tax at the highest rate of tax in effect for the applicable category of taxpayer for that year
and an interest charge will be imposed with respect to the resulting tax attributable to each such other taxable year. A U. S. Holder
that is not a corporation will be required to treat any such interest paid as “personal interest”, which is not deductible.

U. S.
Holders can avoid the adverse rules described above in part by making a mark-to-market election with respect to the Common Shares, provided
that the Common Shares are “marketable”. The Common Shares will be marketable if they are “regularly traded”
on a “qualified exchange” or other market within the meaning of applicable U. S. Treasury regulations. For this purpose, the
Common Shares generally will be considered to be regularly traded during any calendar year during which they are traded, other than in
de minimis quantities, on at least 15 days during each calendar quarter. The Common Shares are currently listed on the NASDAQ, which
constitutes a qualified exchange; however, there can be no assurance that the Common Shares will be treated as regularly traded for purposes
of