Company: EGG
Filing Date: 2025-03-04
Form Type: DRS/A
Source: 0001493152-25-008991
Chunk: 186

Company: ENIGMATIG LTD
Filing Date: 2025-03-04
Form: DRS/A
Chunk 186
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Revenue recognition

As discussed in Notes 2 to the consolidated financial statements, revenue are primarily derived from corporate secretarial and regulatory consultancy service contracts that are recognized as the performance obligations are satisfied over time or point in time. During the three years ended September 30, 2024, 2023 and 2022, corporate secretarial and regulatory consultancy service provided was delivered approximately $4.0 million, $4.6 million and $2.8 million revenue pursuant to the service agreements entered, respectively. Pursuant to the contracts, the Company is responsible for assisting its clients in setting up, renewing, and complying with various brokerage and financial licenses, in addition to licensing services, the Company offer ancillary consultancy services including but not limited to business planning, drafting of risk and compliance manuals, and assistance in sourcing talents.

We identified the accounting for revenue recognition as a critical audit matter due to the high variety of services included in corporate secretarial and regulatory consultancy service. This led to a high degree of auditor judgment, subjectivity and significant audit effort was required in performing procedures to evaluate management’s determination of distinct performance obligation that should be accounted for separately versus together and the timing of when revenue is recognized.

The primary procedures we performed to address this critical audit matter included:

| Ø | Obtained                                                                                  
 and understood the service agreements of corporate secretarial and regulatory consultancy 
 services provided;                                                                        |

| Ø | Performed                                                                                       
 walkthroughs of sales and purchase transactions to confirm the working flow of the key business 
 cycles;                                                                                         |

| Ø | Obtained                                                                                  
 and assess the reasonableness of revenue recognition memo including analysis of principal 
 versus agent along with the management’s conclusion;                                      |

| Ø | Tested                                                                               
 the mathematical accuracy of management’s calculations of revenue and the associated 
 timing of revenue recognized in the consolidated financial statements.               |

| Ø | Tested                                                                        
 the revenue cut-off test of a period before and after the balance sheet date. |

We have served as the Company’s auditor since 2022.

PCAOB ID: 2485

Rowland Heights, California

February 28, 2025

| F-2 |

<div align='center'>ENIGMATIG LIMITED (FORMERLY KNOWN AS DESFRAN HOLDINGS LIMITED)

CONSOLIDATED BALANCE SHEETS</div>

|                                                                                               |     |              As 
 of September 30 |           |     |           |           |   |     |      |           |   |
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