Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 114

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 114
---
 of September 30, 2023. The balances arise from logistics service providers were settled within
7 to 30 days. The increase was mainly due to outstanding supplier invoices related to the air freight costs for the year ended September
30, 2023.

Accounts payable - related party

Accounts payable - 
related party amounted to $175,479 and nil as of September 30, 2022 and September 30, 2023, respectively. For the year ended September
30, 2022, this balance consists of accounts payable to a related company arising from unsettled courier service fees.

Other payables and accrued liabilities

The line item consists
of accrued payroll expenses, audit fees, other administrative expenses and accrued offering costs. The balance increased significantly
by $1,082,973, or 8,303.1% from $13,043 as of September 30, 2022 to $1,096,016 as of September 30, 2023, the increase was mainly due
to the increase of accrued offering costs and audit expenses.

Lease liabilities - current

Our lease liabilities
represented the current portion of the operating lease of our Hong Kong office and warehouse.

  67  

  Table of Contents  

Effective October
1, 2020, the Company adopted the new lease accounting standard using a modified retrospective transition method, which allows the Company
not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of
practical expedients, which allows the Company to not reassess whether any existing contracts contain a lease, to not reassess historical
lease classification as operating or finance leases, and to not reassess initial direct costs. The Company combines the lease and non-lease
components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating
lease ROU assets and corresponding operating lease liabilities. ROU assets and related lease obligations are recognized at commencement
date based on the present value of remaining lease payments over the lease term.

The Company’s
management believes that the Hong Kong Dollar Best Lending Rate (“ BLR”) was the most indicative rate of the Company’s
borrowing cost for the calculation of the present value of the lease payments; the rate used by the Company as quoted by the BLR minus
2.5%

Cash Flow

Our use of cash is
primarily related to operating activities, payment of dividends and payment of deferred IPO cost. We have historically