Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 107

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 5
Chunk 107
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ables and accrued liabilities
of HK$7.0 million, amounts due to related parties of HK$2.4 million, current portion of lease liabilities of HK$4.1 million and bank loan
of HK$11.0 million.

Off-Balance Sheet Arrangements

As of December 31, 2024, the Company
had no off-balance sheet arrangements, including arrangements that would affect its liquidity, capital resources, market risk support,
and credit risk support or other benefits.

Future Financings

The Company may sell its Ordinary
Shares in order to fund its business growth. Issuances of additional shares will result in dilution to existing shareholders. There is
no assurance that the Company will achieve sales of its equity securities or arrange for debt or other financing to fund its growth in
case it is necessary, or if the Company is able to do so, there is no guarantee that existing shareholders will not be substantially diluted.

Critical Accounting Policies, Judgments and Estimates

Basis of Presentation

The consolidated financial
statements have been prepared in accordance with the accounting principles generally accepted in the United States of America
(“ US GAAP”). Accordingly, these statements should be read in conjunction with the Company’s financial statements
and note thereto as of and for the fiscal years ended December 31, 2024, 2023 and 2022.

Principle of consolidation

The consolidated financial statements
include the financial statements of the Company and its subsidiaries. All inter- company transactions, if any, and balances due to, due
from, long-term investment subsidiary, and registered paid in capital have been eliminated upon consolidation.

  65  

Business combinations and noncontrolling interests

The Company accounts for its business
combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ ASC”) 805 “ Business
Combinations.” The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred
to the sellers, liabilities incurred by the Company and equity instruments issued by the Company. Transaction costs directly attributable
to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed are measured separately at their fair
values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition,
fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over
(ii) the acquisition date amounts of the identifiable net