Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 238

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 19
Chunk 238
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 15,116,783  
  Air freight forwarding services                                                4,577,014                 1,713,989                 1,423,396  
  Total                                           $                             24,021,196      $         18,586,528      $         16,540,179  

Cost of revenue

Cost of revenue consists primarily of
cargo space charged by airlines or other freight forwarders and ancillary logistics services fee including costs of custom handling services,
last mile carriage, warehouse labor costs and warehouse packaging.

General and Administrative Expenses

General and administrative expenses include
salaries and employee benefits, depreciation for fixture, furniture and office equipment and ROU assets, legal and professional fees,
travel and entertainment, audit fees, bank charges, credit loss expense and other office expenses.

Income Taxes

The Company accounts for income taxes
following the liability method pursuant to FASB ASC 740 “ Income Taxes”. Under this method, deferred tax assets and liabilities
are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates
that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset
deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred
tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes
the enactment date.

The Company also follows FASB ASC 740,
which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the
financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that
the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits
recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty
percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest
and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of September 30, 2023 and 2024, the
Company did not have a liability for unrecognized tax benefits. It is the Company’s policy to include penalties and interest expense
related to income taxes as a component of other expense and interest expense, respectively