Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 42

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 42
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 securities class action suits against those companies following periods of instability in the market
price of their securities. If we were involved in a class action suit, it could divert a significant amount of our management’s
attention and other resources from our business and operations and require us to incur significant expenses to defend the suit, which
could harm our results of operations. Any such class action suit, whether or not successful, could harm our reputation and restrict our
ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant
damages, which could have a material adverse effect on our financial condition.

If we fail to meet applicable listing requirements,
Nasdaq may delist our Ordinary Shares from trading, in which case the liquidity and market price of our Ordinary Shares could decline.

Even though our Ordinary
Shares have been approved for listing on Nasdaq, we cannot assure you that we will be able to meet the continued listing standards of
Nasdaq in the future. If we fail to comply with the applicable listing standards and Nasdaq delists our Ordinary Shares, we and our shareholders
could face significant material adverse consequences, including:

  a limited availability of market quotations for our Ordinary Shares;                                                                                                                                  
  reduced liquidity for our Ordinary Shares;                                                                                                                                                            
  a determination that our Ordinary Shares are “penny stock,” which would require brokers trading in our Ordinary Shares to adhere to more stringent rules and possibly result in a reduced level o...  
  a limited amount of news about us and analyst coverage of us; and                                                                                                                                     
  a decreased ability for us to issue additional equity securities or obtain additional equity or debt financing in the future.                                                                         

The U. S. National Securities
Markets Improvement Act of 1996 prevents or pre-empts the states from regulating the sale of certain securities, which are referred to
as “covered securities.” Because we expect that our Ordinary Shares will be listed on Nasdaq, such securities will be covered
securities. Although states are pre-empted from regulating the sale of our securities, this statute does allow the states to investigate
companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the
sale of covered securities in a particular case. Further, if we were no longer listed on Nasdaq, our securities would not be covered securities
and we would be subject to regulations in each state in which we offer our securities.

Our pre-IPO shareholders