Company: GINT
Filing Date: 2025-05-16
Form Type: DRS/A
Source: 0001213900-25-044839
Chunk: 204

Company: Gifts International Holdings Ltd
Filing Date: 2025-05-16
Form: DRS/A
Chunk 204
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 •Basis of Presentation The accompanying unaudited condensed consolidated and combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). •Basis of Consolidation The unaudited condensed consolidated and combined financial statements include the accounts of the Company and its subsidiaries and Variable Interest Entity (“VIE”) in which the Company is the primary beneficiary. All significant inter -companybalances and transactions within the Company have been eliminated upon consolidation. The Company determines, under Accounting Standards Codification (“ASC”) Topic 810, Consolidation(“ASC 810”), whether an entity in which it has made an investment or in which it has other variable interest is considered a VIE. The Company consolidates a VIE when it is the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i)has the has the power to direct the activities that most significantly affect the economic performance of the VIE; and (ii)has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, the Company determines whether any changes in its interest or relationship with the entity impact the determination of whether the entity is still a VIE and, if so, whether the Company is the primary beneficiary. Currently, MGGB is deemed as a VIE, in which Mr. Wong owns 100% in equity interest and commonly controls as a related party to the Company. MGGB is acting as an operating unit to collect the sales receipts on behalf of the Company. Hence, the Company consolidates MGGB’s financial statements, when it is the primary beneficiary under ASC 810. For the six months ended September 30, 2023 and 2024, MGGB contributed less than 1% of the Company’s total revenues, whose operation is considered not material. •Use of Estimates and Assumptions The preparation of unaudited condensed consolidated and combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the unaudited condensed consolidated and combined financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated and combined financial statements include the useful lives of plant and equipment,