Company: GINT
Filing Date: 2025-08-15
Form Type: F-1/A
Source: 0001213900-25-077286
Chunk: 117

Company: Gifts International Holdings Ltd
Filing Date: 2025-08-15
Form: F-1/A
Chunk 117
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’s revenue arrangements generally consist of a single performance obligation to transfer promised goods. Revenue is reported net of sale rebates and discounts. The Company generates revenue through direct -to-consumereCommerce sales via its website, as well as offline sales driven by its dedicated sales team. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due, prior to the date of shipment. Deferred revenue is recorded when the Company has received consideration (i.e., advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenue primarily relates to e -commerceorders placed, but not shipped, prior to the end of the fiscal period. Principal vs Agent Considerations When another party is involved in providing goods to the customer, the Company will apply the principal versus agent guidance in ASC 606 to determine if the Company is acting as the principal or an agent to the transaction. This evaluation determined that the Company is in control of establishing the transaction price, managing all aspects of the 64 shipment term, and taking the risk of loss for delivery, collection, and returns. Based on the Company’s evaluation of the control model, it is determined that all the Company’s major businesses act as the principal rather than the agent within their revenue arrangements and such revenues are reported on a gross basis. Cost of Revenues Cost of revenues consists primarily of the cost of floral and non -floralmerchandise sold from inventory or through third parties, bouquet fulfillment costs, and the cost associated with wrapping and packaging. Sales and Marketing Costs Marketing and sales expense consists primarily of advertising expenses, online portal and e -catalogexpenses and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities. Technology and Development Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment and database systems. Costs associated with repair maintenance, or the development of website content are expensed as incurred. Segment Reporting ASC Topic 280, Segment Reporting(“ASC 280”), establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. In accordance with ASU No.