Company: MEGL
Filing Date: 2025-06-27
Form Type: F-1/A
Source: 0001641172-25-016831
Chunk: 92

Company: Magic Empire Global Ltd
Filing Date: 2025-06-27
Form: F-1/A
Chunk 92
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        |     |                 |  1,164,000 |     |      |   1,644,000 |     |      |    211,645 |
| Operating lease liabilities |     |                 |  1,746,317 |     |      |   1,204,436 |     |      |    155,057 |
| Total                       
 current liabilities         |     |                 |  3,989,317 |     |      |   3,541,670 |     |      |    455,948 |
| Net                         
 current assets              |     |                 | 92,266,731 |     |      | 127,099,288 |     |      | 16,362,538 |

| 53 |

Accounts Receivable

Our accounts receivable represented receivables from clients of our corporate finance advisory services. Accounts receivable from corporate finance advisory services included service fees billed but not yet settled. We do not grant credit terms to our clients. We issue an invoice to our clients of corporate finance advisory services after a milestone specified under our mandate is achieved or upon completion of the transaction.

Our accounts receivable balance decreased by HK$508,218, or 22.1% from HK$2,302,436 as of December 31, 2023 to HK$1,794,218 (US$230,984) as of December 31, 2024. The decrease was mainly due to billing made prior to year-end of 2023 remain unsettled while billing made prior to year-end of 2024 decreased.

An impairment analysis is performed on a regular basis. During the years ended December 31, 2023 and 2024, we had not made any provision for credit losses in relation to our accounts receivable.

Deposits and prepayments

Our deposits and prepayments mainly represented rental deposit and prepayment of our office premises and other utility deposits. The decrease in deposits and prepayments from HK$1,096,249 as of December 31, 2023 to HK$885,448 (US$113,991) as of December 31, 2024 was mainly due to the decrease in rental deposit of our office premises as a result of reduction in monthly rental upon renewal.

Accruals and other payables

Our accruals and other payables mainly represented accrued operating expenses.

Contract liabilities

Our contract liabilities represented the upfront payments received upon signing of the mandate for our clients