Company: MASK
Filing Date: 2025-12-02
Form Type: POS AM
Source: 0001185185-25-001899
Chunk: 260

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-02
Form: POS AM
Chunk 260
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 reasonably estimable, disclosure of the loss contingency is made in
the financial statements when it is at least reasonably possible that a estimable material loss could be incurred.

As of both
June 30, 2025 and 2024, there were no contingent liabilities relating to litigations against the Group.

x) Lease

In February
2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The amendments in this ASU require that a lessee recognize the
assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability
to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease
term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying
asset not to recognize lease assets and lease liabilities. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments —
Credit losses (Topic 326), Derivative and Hedging (Topic 815), and Lease (Topic 842): Effective Date. ASU2019-10 amends the effective
dates for ASU No. 2016-02. The Group fits the requirement for other entities and has adopted ASU2016-02 for fiscal year ended June 30,
2024 and 2023. The Company has adopted the amendments with no material change to the Group’s balance sheet to recognize right-of-use
assets and related lease liabilities for operating leases.

y) Change in presentation in consolidated statement of cash flow

The cash flow
from deferred IPO cost was classified as operating activities in the consolidated statement of cash flow for the year ended June 30, 2023
in previous filing. This cost is financial in nature and it is to be presented under cash flow from financing activities for the reporting
periods. This change has no impact on the consolidated statements of income and comprehensive income.

z) Recent issued or adopted accounting standards

The Group is
an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS
Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the
JOBS Act until such time as those standards apply to private companies.