Company: EGG
Filing Date: 2025-03-04
Form Type: DRS/A
Source: 0001493152-25-008991
Chunk: 190

Company: ENIGMATIG LTD
Filing Date: 2025-03-04
Form: DRS/A
Chunk 190
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 include, but are not limited to for the estimated credit loss of accounts receivable, impairment of long-lived assets, income tax and discount rate applied to the Company’s right-of-use asset and related lease liabilities. Actual results may differ from these estimates.

Cash and cash equivalents

Cash and cash equivalents represent cash and deposit with financial institution with original maturities less than 90 days. They are unrestricted as to withdrawal or use.

Accounts receivable

Accounts receivable mainly represent amounts due from customers that meet the revenue recognition criteria. These accounts receivables are recorded net of any allowance for credit losses and specific customer credit allowances. The Company maintains an allowance for estimated credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Company’s customers’ financial condition, the receivable amount in dispute, and the current receivables aging and current payment patterns, over the contractual life of the receivable. The Company writes off the receivable when it is determined to be uncollectible.

| F-8 |

<div align='center'>ENIGMATIG LIMITED (FORMERLY KNOWN AS DESFRAN HOLDINGS LIMITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

| 2 | Summary of significant accounting policies (continued) |

Deposits and prepayments

Deposits and prepayments are classified as either current or non-current based on the terms of the respective agreements.

Digital Assets

The Company accounts for its digital assets, which are comprised solely of Tether (USDT), as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other. The Company has ownership of and control over its USDT and uses third-party custodial services to store its USDT. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition. Digital assets are included in current assets in the Consolidated Balance Sheets due to the Company’s ability and intention to exchange USDT, the only digital asset held by the Company, into fiat through highly liquid exchanges.

The Company determines the fair value of its USDT on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement, based on quoted (unadjusted) prices on the Coinbase exchange, the active exchange that the Company has determined is its principal market for USDT (Level 1 inputs). The Company performs an analysis