Company: MASK
Filing Date: 2025-11-25
Form Type: F-1
Source: 0001185185-25-001852
Chunk: 247

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-11-25
Form: F-1
Chunk 247
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30,2025.

The Company has identified and evaluated the embedded features of the convertible notes, and concluded that (i) the Company call option, contingent interest features for event of default, and event of delisting put option are clearly and closely related to the debt host instrument and, therefore, are not required to be bifurcated under ASC 815, (ii) the conversion right is eligible for a scope exception from derivative accounting and is not required to be bifurcated under ASC 815. Consequently, the Company accounts for the convertible notes as a liability following the respective guidance of ASC 815 and ASC 470.

The company issue (i) up
to Warrants to purchase up to certain number of Class A ordinary shares par value $ per Shares that equals % of the maximum principal
amount of the First Tranche Note divided by the daily VWAP prior to the initial closing date of the First Tranche(that is warrants).
Therefore, the warrant should be settled by a fixed number of shares rather than a variable number of shares.In conclusion, the Warrants
does not fall into any of the three classes, and it is without the scope of ASC 480.

The amortized cost of the Convertible Note as of June 30, 2025 consisted of the following:

|                                                 |     | As of    
 June 30, 
 2025     |           |   |
|:------------------------------------------------|:----|:---------|----------:|:--|
|                                                 |     | US$      |           |   |
| Convertible Note Principal- Issued in June 2025 |     |          | 1,500,000 |   |
| Convertible Note Interest Adjustment            |     |          |  (419,734 | ) |
| Total                                           |     |          | 1,080,266 |   |

F-21 3 E NETWORK TECHNOLOGY GROUP LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 11. Income Taxes The entities within the Group file separate tax returns in the respective tax jurisdictions in which they operate. British Virgin Islands (“BVI”) Under the current laws of the BVI, the Group’s subsidiaries incorporated in BVI are not subject to tax on income or capital gains. Additionally, upon payments of dividends by these BVI companies to its respective shareholders, no BVI withholding tax will be imposed. Hong Kong, PRC Our subsidiary, HK 3e Network, is a Hong Kong entity subject to the two-tier profits tax rates system, which