Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 29

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 29
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may be subject to litigation, claims or other disputes.

We
may from time to time be involved in disputes arising from contracts with customers, employees, independent contractors in our talent
pool or other third parties. Claims may also arise from disputes with customers and/or independent contractors in our talent pool on
matters relating to payment and/or contractual performance. Claims involving us could result in time-consuming and costly litigations,
arbitration, administrative proceedings or other legal procedures. Expenses we incur in legal proceedings or arising from claims brought
by or against us may materially and adversely affect our financial performance.

Actions
brought against us may result in settlements, awards, injunctions, fines, penalties and other results adverse to us. Moreover, liquidated
damages, legal proceedings resulting in unfavorable judgment may harm our reputation, cause financial losses and damage our prospects
of being awarded future contracts, thereby materially and adversely affecting our operations, financial performance and prospects.

We
are dependent on external financing to support our business growth.

We
may rely on bank loans to finance our operations, if necessary. Our total borrowings were approximately HK$3.5 million and nil as of
June 30, 2024 and 2025, respectively.

Our
ability to obtain adequate financing on terms which are acceptable to us depends on a number of factors such as our financial strength,
our creditworthiness and our prospects, and other factors that are beyond our control, including general economic, industry, liquidity
and political conditions, the terms on which financial institutions are willing to extend credit to us, central bank’s policy rates
and cash reserve requirements for banks, and the availability of other sources of debt financing or equity financing. There may also
be covenants that restrict our ability to pay dividends and/or restrict our flexibility in utilizing working capital to react to changes
in the business environment. Additionally, our business requires significant amount of working capital to fund the payroll of placement
filled by us before the corresponding payments from clients, and inability to finance the payroll payment and temporary cash flow imbalance
arising therefrom can adversely affect our operation and curtail our business growth. If all or a substantial portion of our bank facilities
are withdrawn, or we cannot access additional banking facilities, our operations and financial performance will be adversely and materially
affected.

We
may default on our obligations under our credit facilities.

We
entered into a banking facility with a bank in Hong Kong. A failure to repay any of the indebtedness under our banking facilities as