Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 35

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 35
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To implement Section 404
of the Sarbanes-Oxley Act of 2002, the SEC adopted rules requiring public companies to include a report of management on the company’s
internal control over financial reporting. Prior to filing the registration statement, we were a private company with limited accounting
personnel and other resources for addressing our internal control over financial reporting. Our management has not completed an assessment
of the effectiveness of our internal control over financial reporting and our independent registered public accounting firm has not conducted
an audit of our internal control over financial reporting. However, in connection with the audits of our consolidated financial statements
as of June 30, 2025, 2024 and 2023, we and our independent registered public accounting firms identified material weaknesses in our internal
control over financial reporting as well as other control deficiencies for the above mentioned periods. As defined in the standards established
by the Public Company Accounting Oversight Board (“ PCAOB”) of the United States, a “material weakness” is a deficiency,
or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness
identified related to i) a lack of sufficient financial reporting and accounting personnel with appropriate knowledge of U. S. GAAP and
SEC reporting requirements to formalize key controls over financial reporting and to prepare consolidated financial statements and related
disclosures; and ii) a lack of an effective control framework in place and critical information technology general controls (“ ITGC”)
have design deficiencies in areas including logical access, privileged access and cybersecurity.

We intend to implement measures
designed to improve our internal control over financial reporting to address the underlying causes of these material weaknesses, including i)
setting up a financial and system control framework with formal documentation of polices and controls in place; and ii) setting up
an ITGC and system control framework with formal documentation of polices and controls in place.

We will be subject to the
requirement that we maintain internal controls and that management perform periodic evaluation of the effectiveness of the internal controls.
Effective internal control over financial reporting is important to prevent fraud. As a result, our business, financial condition, results
of operations and prospects, as well as the market for and trading price of our Ordinary Shares, may be materially and adversely affected
if we do not have effective internal controls. Before this offering, we were a private company with limited