Company: CLIK
Filing Date: 2025-03-19
Form Type: F-1
Source: 0001213900-25-025112
Chunk: 98

Company: Click Holdings Ltd.
Filing Date: 2025-03-19
Form: F-1
Chunk 98
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 to determine if the allowance for expected credit losses is adequate and adjusts the allowance, including the base loss rate and adjustment factors, when necessary. The Company believes the estimates utilized in preparing its CFS are reasonable and prudent. Actual results could differ from these estimates. To the extent that there are material differences between these estimates and the actual results, future financial statements will be affected. The Company had allowance for expected credit losses on accounts receivable of $5,200 and nil as of December 31, 2023 and 2022, respectively. The Company had allowance for expected credit losses on accounts receivable of $7,000 and $5,200 as of June30, 2024 and 2023, respectively. 60 Quantitative and Qualitative Disclosures about Market Risk Liquidity risk We are exposed to liquidity risk, which is the risk that we will be unable to provide sufficient capital resources and liquidity to meet our commitments and business needs. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. When necessary, we will turn to other financial institutions to obtain short -termfunding to meet the liquidity shortage. Interest rate risk As of December 31, 2023, we had outstanding bank loans of approximately $0.5 million, which are payable within one year. The bank loans bore effective interest rates from 6.37% to 7.15%. Our exposure to interest rate risk primarily relates to the interest rate on our outstanding short -termloans which are payable within one year. Our deposited cash raised by this offering can earn income, on the other hand. We have not been exposed to material risks due to changes in interest rates. An increase, however, may raise the cost of any debt we incur presently and, in the future, and result in an adverse impact on our income. Foreign Exchange Risk Foreign exchange risk is the risk that the value of financial assets or liabilities will fluctuate due to changes in foreign exchange rates. We are exposed to foreign exchange risk from our business which is denominated in currencies other than US$ (i.e., HK$). Consequently, the exchange rate to our currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of our assets or liabilities denominated in currencies other than US$. Our currency exposure is measured and monitored