Company: EGG
Filing Date: 2025-04-24
Form Type: F-1/A
Source: 0001641172-25-005939
Chunk: 191

Company: ENIGMATIG LTD
Filing Date: 2025-04-24
Form: F-1/A
Chunk 191
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 credit allowances. The Company maintains an allowance for estimated credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Company’s customers’ financial condition, the receivable amount in dispute, and the current receivables aging and current payment patterns, over the contractual life of the receivable. The Company writes off the receivable when it is determined to be uncollectible.

| F-8 |

<div align='center'>ENIGMATIG LIMITED (FORMERLY KNOWN AS DESFRAN HOLDINGS LIMITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

| 2 | Summary of significant accounting policies (continued) |

Deposits and prepayments

Deposits and prepayments are classified as either current or non-current based on the terms of the respective agreements.

Digital Assets

The Company accounts for its digital assets, which are comprised solely of Tether (USDT), as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other. The Company has ownership of and control over its USDT and uses third-party custodial services to store its USDT. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition. Digital assets are included in current assets in the Consolidated Balance Sheets due to the Company’s ability and intention to exchange USDT, the only digital asset held by the Company, into fiat through highly liquid exchanges.

The Company determines the fair value of its USDT on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement, based on quoted (unadjusted) prices on the Coinbase exchange, the active exchange that the Company has determined is its principal market for USDT (Level 1 inputs). The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted (unadjusted) prices on the active exchange, indicate that it is more likely than not that any of the assets are impaired. In determining if an impairment has occurred, the Company considers the lowest price of one USDT quoted on the active exchange at any time since acquiring the USDT held by the Company. If the carrying value of a USDT exceeds that lowest price, an impairment loss has occurred with respect to that USDT in the amount equal to the difference between its carrying value and such lowest price.

Impairment losses are