Company: MEGL
Filing Date: 2025-06-09
Form Type: F-1/A
Source: 0001641172-25-014301
Chunk: 94

Company: Magic Empire Global Ltd
Filing Date: 2025-06-09
Form: F-1/A
Chunk 94
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 non-cash items consisted mainly of (i) amortization of right-of-use asset for our Hong Kong office of HK$1,895,294; (ii) depreciation charge of HK$209,966; and (iii) interest on lease liabilities of HK$139,296. Changes in operating assets and liabilities mainly included: (i) increase in accounts receivable of HK$314,033 due to billing made prior to year-end remained unsettled; (ii) changes in operating lease liabilities of HK$2,044,020; (iii) decrease in contract liabilities of HK$1,890,032 due to recognition of revenue and reversal of contract liabilities upon achievement of milestones of our projects; and (iv) settlement of tax recoverable of HK$587,834.

For the year ended December 31, 2024, we had net cash used in operating activities of HK$4,649,862 (US$598,615) mainly arising from net loss from our operations of HK$4,729,852 (US$608,913) as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items consisted mainly of (i) amortization of right-of-use asset for our Hong Kong office of HK$1,719,081 (US$221,311); (ii) depreciation charge of HK$380,995 (US$49,049); (iii) gain on disposal of long-term investment of HK$1,105,998 (US$142,384); and (iv) interest on lease liabilities of HK$61,232 (US$7,883). Changes in operating assets and liabilities mainly included: (i) decrease in accounts receivable of HK$508,218 (US$65,427) due to decrease in billing made prior to year-end as compared to December 31, 2023; (ii) changes in operating lease liabilities of HK$1,788,518 (US$230,251); (iii) increase in contract liabilities of HK$480,000 (US$61,794) as we entered into new mandates with clients during the year ended December 31, 2024 and received relevant upfront payments; (iv) decrease in accruals and other payables of HK$385,766 (US$49,662); and (v) decrease in deposits and prepayments of HK$210,801 (US$27,138) due to decrease in rental deposit as a result