Company: EGG
Filing Date: 2025-03-28
Form Type: F-1
Source: 0001641172-25-001072
Chunk: 67

Company: ENIGMATIG LTD
Filing Date: 2025-03-28
Form: F-1
Chunk 67
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 2023, and corporate services income for Fiscal 2023 increased to US$4,607,006. However, our corporate services income decreased from US$4,607,006 for the year ended September 30, 2023 to US$3,967,802 for the year ended September 30, 2024, driven primarily by increased client wariness due to geopolitical conditions, including the Israel-Palestine conflict, the ongoing conflict between Russia and Ukraine and uncertainties surrounding the US elections. While we continue to see a promising landscape of opportunities emerging from this recovery phase and we see new services bear fruit, the increase in corporate services income from pent-up demand may not be sustained or maybe affected by geopolitical events, and our corporate services income may be affected.

Rising costs of local agents and labor

We typically carry out various aspects of our operations through local law firms, accounting firms and other third-party professional firms to leverage their expertise and to mitigate our exposure to regulatory non-compliance in various jurisdictions. In recent years, the prevailing macroeconomic environment, characterized by heightened inflationary pressures, has translated into amplified operational costs from external specialists and agents. Staff costs are also subject to increases year on year. We managed such increased costs by controlling headcount in recent years. Our total number of full-time employees decreased from 22 full-time employees as of September 30, 2021 to 17 full-time employees as of September 30, 2022, driven primarily by natural attrition and slower hiring as a result of the COVID-19 pandemic. Similarly, our total number of full-time employees decreased from 17 full-time employees as of September 30, 2022 to 14 full-time employees as of September 30, 2023. This decrease offset cost of labor increases such that staff cost included in cost of sales decreased 29.8% from US$606,079 for Fiscal 2022 to US$425,284 for Fiscal 2023. However, staff cost included in cost of sales increased 5.2% from US$425,284 for the year ended September 30, 2023 to US$447,308 for the year ended September 30, 2024, as the number of full-time employees increased from 14 as of September 30, 2023 to 15 as of September 30, 2024. Moreover, payroll and employee benefits increased 329.6% from US$179,335 for Fiscal 2022 to US$