Company: EGG
Filing Date: 2025-04-24
Form Type: F-1/A
Source: 0001641172-25-005939
Chunk: 29

Company: ENIGMATIG LTD
Filing Date: 2025-04-24
Form: F-1/A
Chunk 29
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 clients have been and could continue to be negatively impacted by the epidemic, which may in turn adversely impact their business performance, and result in a decreased demand for our all line of services.

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Depressed business sentiment and inability to freely travel in the first half of Fiscal 2022 resulted in the addition of no new clients over such period and comparatively low corporate services income. Although we added new clients in the second half of Fiscal 2022 and Fiscal 2023 and a limited number of new clients in Fiscal 2024 and increased our corporate services income, there can be no assurance that such increases are sustainable.

The prolonged phenomenon of COVID-19 and the effects of mutations in the virus, both in terms of extent and intensity of the pandemic, together with their impact on our industry and the macroeconomic situations are still difficult to anticipate and may pose substantial uncertainties. In the event the health and economic environment does not improve or there is no continued recovery in the regions where we serve our clients or operate, our business, results of operations and financial condition could be materially and adversely affected. We will continue to closely monitor the effects of the pandemic impact on our business.

We had a concentration of credit risk because we derived our corporate services income from a limited number of customers.

For the year ended September 30, 2024, we derived our corporate services income from 55 customers with the top two customers contributing approximately 47.9% of our total corporate services income. For the year ended September 30, 2023, we derived our corporate services income from 60 customers with the top two customers contributing approximately 54.7% of our total corporate services income. For the year ended September 30, 2022, we derived our corporate services income from 87 customers, with the top two customers contributing approximately 46.3% of our total corporate services income. Generally, we either require prepayment in full or offer alternate payment plans for customers to prepay a certain percentage with the remainder to be settled after completion of our services. We cannot assure you that we will not see concentration of accounts receivable from a small number of customers in the future. In such case, if any of these customers defaults on its payment obligations to us, we will not be able to recover the related accounts receivable, and our business, financial condition and results of operations may be materially and adversely affected.

We depend on a limited number of customers for a significant portion of our corporate services income and the loss of one or more of these