Company: EGG
Filing Date: 2025-04-22
Form Type: F-1/A
Source: 0001641172-25-005604
Chunk: 67

Company: ENIGMATIG LTD
Filing Date: 2025-04-22
Form: F-1/A
Chunk 67
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, leading to decreased service demand. We did not add any new clients in Fiscal 2021 or the first half of Fiscal 2022. As borders opened over the course of 2022 and economies embarked on recovery, demand began to increase. We added four clients in the second half of Fiscal 2022 and 27 new clients in Fiscal 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