Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 241

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 241
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uneration package
for settlement where applicable. The Group usually allows a credit term of 30 days to its customers or the invoices are due upon receipt.

There is no variable consideration,
significant financing components or non-cash consideration in the contracts. Accordingly, based on the output methods, the Group recognizes
revenues for the employment services on a monthly basis when it satisfies its performance obligations that it renders employment services
throughout the contract terms.

There is no contract asset that the Group has right to consideration
in exchange for its employment services that the Group has transferred to customers, which such right is conditional on something other
than the passage of time.

Payroll outsourcing services

The Group provides payroll
outsourcing services to customers. Such services are recognized as a performance obligation satisfied over time as customer simultaneously
receives and consumes the benefits provided by the Group using output methods.

The promises in the agreements
are generally combined into one performance obligation, as they are considered a series of distinct services, and are satisfied over time
because the client simultaneously receives and consumes the benefits provided as the Group performs the services. The service fee for
the payroll outsourcing services is charged and invoiced on a fixed fee per staff upon completion of each payroll calculation, as the
value to the client of the goods or services transferred to date (e. g. number of payees or number of payrolls processed) appropriately
depicts performance towards complete satisfaction of the performance obligation. The fees are typically billed in the period in which
services are performed. The Group usually allows a credit term of ranging from 30 days to 90 days to its customers.

The Group concludes that the monthly payroll outsourcing services satisfy
the requirements of ASC 606-10-25-14(b) to be accounted for as a single performance obligation.

There is no variable consideration,
significant financing components or non-cash consideration in the contracts. Accordingly, based on the output methods, The Group recognizes
revenues for the payroll outsourcing services on a monthly basis when it satisfies its performance obligations that it renders payroll
outsourcing services throughout the contract terms.

There is no contract asset that the Group has right to consideration
in exchange for its payroll outsourcing services that the Group has transferred to its customers, which such right is conditional on something
other than the passage of time.

Cost of Revenues

Cost of revenues consists
of in-country partner cost, net exchange difference, employee compensation, related payroll benefits and the Group’s director remuneration
which are attributable to the revenue-generating