Company: AGCC
Filing Date: 2025-03-31
Form Type: DRS
Source: 0001213900-25-026121
Chunk: 75

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-03-31
Form: DRS
Chunk 75
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, supplemented by financing activities as needed. We remain committed to optimizing our inventory management and working capital efficiency to improve our operating cash flow generation. commitments and contingencies We have entered into long -termoperating leases for office premises and warehouses in Taiwan. These lease commitments are a regular part of our business operations and are necessary to secure the required facilities for our operations.

53 In the ordinary course of business, we may be subject to legal proceedings regarding contractual relationships and a variety of liabilities. When a loss is assessed to be probable, and the amount of the loss is reasonably estimable, appropriate provisions are made in accordance with applicable accounting standards. As of December 31, 2023, and December 31, 2024, and through the date of this prospectus, we are not aware of any pending or threatened claims and litigation that could have a material impact on our financial position or results of operations. During the financial year ended December 31, 2024, we entered into an agreement with a related party regarding the right to use a trademark on our whisky products. The total commitment under this agreement amounted to 7,500,000 Japanese Yen (approximately US$48,000). As of December 31, 2024, approximately US$5,120 remained outstanding under this commitment. The Company actively monitors and manages our commitments and contingencies to mitigate potential risks and liabilities. We maintain appropriate accounting policies and procedures to ensure that all significant commitments and contingencies are properly recognized, measured, and disclosed in our financial statements and related disclosures. seasonality Our business operations and financial results are not significantly impacted by seasonal variations or fluctuations in consumer demand patterns throughout the year. Our whisky products are not heavily influenced by seasonal factors or specific holiday periods. Instead, our sales and demand are driven primarily by the consistent appreciation for high -qualitywhisky among our customer base, which includes discerning collectors, connoisseurs, and enthusiasts. While we may experience slight variations in demand during certain periods, these fluctuations are relatively minor and do not have a material impact on our overall financial performance or operations. Our inventory management strategies are focused on maintaining a consistent supply of our diverse whisky offerings to meet the ongoing demand from our customers, rather than accommodating significant seasonal peaks or troughs. This consistent demand profile allows us to maintain a stable and efficient operational rhythm throughout the year, minimizing the need for substantial adjustments to our production, distribution, or inventory levels based on seasonal factors. inflation Our business operations and financial results can be influenced by inflationary pressures,