Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 122

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 122
---
“ SEC”).

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Going
concern

The
Company has incurred a net loss and significant cash outflows from cash used in operating activities over the last year, and as at December
31, 2024, had an accumulated loss of S$ 14,630,797 10,709,118

Management
anticipates that our operating expenses, together with the increased general administrative expenses of being a public company, will
increase in the foreseeable future as we seek to maintain and continue to grow our business, expand geographically, attract potential
customers and further enhance our service offerings.

Management
has prepared cash flow projections covering the next twelve months from the date of these financial statements which consider the increase
in revenue from new geographies and operational efficiencies to improve operating cash flows. The Company also has the financial support
of key shareholders who have indicated their commitment to provide ongoing support to enable the Company to continue its operations at
least through twelve months from the date of these financial statements.

Consolidation

The
consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. A subsidiary is an entity (including
a structured entity), directly or indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared for
the same reporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income,
expenses and cash flows relating to transactions between members of the Company are eliminated on consolidation.

Foreign
currency translation

The
functional currency for SIMPPLE is the Singapore Dollar (“ S$”), which is also the subsidiaries IFSC Pte. Ltd., Gaussian Robotics
Pte. Ltd. and Simpple Pte. Ltd.’s functional currency. The Company uses Singapore Dollar (“ S$”) as its reporting currency.

In
the consolidated financial statements of the Company, transactions in currencies other than the functional currency are measured and
recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary
assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency
using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the
income statements during the year in which they occur.

Translations
of the