PhoneX Shares May Qualify as Qualified Small Business Stock (QSBS) under Section 1202 of the Internal Revenue Code
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Rhea-AI Summary
PhoneX Holdings (OTC: PXHI) announced on October 24, 2025 that it has determined, based on its current understanding and subject to satisfying all requirements, the company may qualify as a “qualified small business” for purposes of potential exclusion of gain under Section 1202 of the Internal Revenue Code.
The company expressly does not guarantee any stock will qualify or that shareholders will receive tax benefits and advises shareholders to consult their own tax advisors before relying on Section 1202.
Positive
- Company may qualify for Section 1202 QSBS treatment (Oct 24, 2025)
- Potential tax exclusion could benefit shareholders upon qualifying dispositions
Negative
- Company does not guarantee any shares will qualify under Section 1202
- Shareholder eligibility depends on meeting all applicable Code requirements
Details
News Market Reaction – PXHI
On Oct 27, the first trading day after this news, PXHI closed 4.76% below the previous close.
Data tracked by StockTitan Argus for the Oct 27 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
New York, NY, Oct. 24, 2025 (GLOBE NEWSWIRE) -- PhoneX Holdings, Inc. (OTC: PXHI) today announces to its shareholders that the Company has determined that, based on its current understanding of the applicable provisions of Section 1202 of the Internal Revenue Code of 1986, as amended (the “Code”), and subject to the satisfaction of all applicable requirements, the Company may qualify as a “qualified small business” for purposes of the potential exclusion of gain from the sale or exchange of “qualified small business stock” (“QSBS”) under Section 1202 of the Code.
While the Company cannot and does not make any representation, warranty, or guarantee that any stock will ultimately qualify as QSBS or that any shareholder will be eligible for any tax benefits under Section 1202 of the Code; shareholders should consult with their own tax advisors regarding the potential availability of Code Section 1202 benefits in connection with any acquisition, holding, or disposition of the Company’s stock.
THE INFORMATION CONTAINED HEREIN IS BEING PROVIDED SOLELY FOR INFORMATIONAL PURPOSES. IT IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSTRUED AS, LEGAL OR TAX ADVICE.
About PhoneX Holdings, Inc.
PhoneX Holdings, Inc. is a technology company powering the global wholesale trade of pre-owned mobile devices. Its industry-leading SaaS platform helps carriers, manufacturers, and distributors manage inventory, optimize sales, and grow their customer networks. By driving efficiency, transparency, and scale, PhoneX enables its partners to maximize value in the secondary mobile device market.
Contact:
Jayme White
PhoneX Holdings, Inc.
Tel: (336) 408-9637
Email: jayme@phonexinc.com
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