Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 138

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 138
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VENUE RECOGNITION

               For                                                                                                 
               the years ended                                                                                     
               December 31,                                                                                        
               2022                                 2023                      2024                                 
               HK$                                  HK$                       HK$                                  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Point                              6,635,000                11,605,000                12,130,000      1,561,595  
  Over                               4,563,252                 2,187,030                   654,230         84,224  
                                    11,198,252                13,792,030                12,784,230      1,645,819  

The
Group also selected to apply the practical expedients allowed under ASC Topic 606 to omit the disclosure of remaining performance obligations
for contracts with an original expected duration of one year or less. As of December 31, 2024 and 2023, all contracts of the Group were
with an original expected duration within one year.

Other
income

Interest
income is mainly generated from savings and time deposits and short-term loans to a company, and is recognized on an accrual basis using
the effective interest method.

In
2022, the Group successfully applied for funding support from the Employment Support Scheme (“ ESS”) under the Anti-epidemic
Fund, set up by the Hong Kong Government, to provide financial support to enterprises to retain their employees who may otherwise be
made redundant and to retain their current employees or even employ more staff when the business revives as soon as the epidemic situation
permits.

For
2022 ESS, the wage subsidies provided to eligible employers under ESS are disbursed in four tranches: (i) the first tranche of 100% subsidies
were used for paying wages of employees in May 2022; (ii) the second tranche of 100% subsidies for paying wages of employees in June
2022; (iii) the third tranche of 70% of subsidies for paying wages of employees in July 2022; and (iv) the fourth tranche of 30% of subsidies
for paying wages of employees in July 2022 after deducting subsidies to be returned to the Government and penalties to be paid (if any).

If
an employer fails to use all the subsidies received to pay the wages of his/her employees, the Hong Kong Government will claw