Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 160

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4A
Chunk 160
---

Research and development expenses increased by HKD18,686,290 from nil
in the year ended June 30, 2024 to HKD18,686,290 (US$2,380,449) in the year ended June 30, 2025. Research and development expenses mainly
consist of technology infrastructure expenses related to platform development to support the Group’s business operations. However,
due to considerations of cost-effectiveness and time limitation, increased competition in the industry, and limited resources within the
Group, the management determined that further investment should be discontinued. As a result, the related expenditures were expensed as
incurred and not capitalized, as they did not meet the capitalization criteria under ASC 350-40-25.

Provision for credit losses

We carry accounts receivable
at the original invoice amount less a provision for estimated credit losses. As of June 30, 2023, we recorded a provision for credit losses
related to accounts receivable of HKD19,022. We estimated our provision for credit losses using relevant available information from internal
and external sources relating to past events, current conditions and reasonable and supportable forward-looking factors. Consequently,
to reflect the cumulative effects of the adoption of ASC 326, we recorded the balance of the provision for credit losses was HKD19,022
as of July 1, 2023. During the year ended June 30, 2025 and 2024, the Group (revered)/accrued HKD(77,218) (US$(9,837)) and HKD101,598
provision for credit losses on the consolidated financial statement related to accounts receivable respectively. As of June 30, 2025 and
2024, the provision for credit losses was HKD43,402 (US$5,529) and HKD120,620.

The table below sets forth the age analysis of
the Group’ gross accounts receivable at the end of each period:

  Year Ended June 30                                                                                                    
  2025 (US$)                174,801       85,928       40,367        128,215       31,863           648        461,822  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  2025 (HKD)              1,372,170      674,528      316,878      1,006,