Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 244

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 244
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 30, 2025 and 2024, respectively (See Note 5).

F-12

Deferred IPO costs

Pursuant to ASC 340-10-S99-1,
IPO costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of the
offering as a reduction of additional paid-in capital. These costs include legal fees related to the registration drafting and counsel,
consulting fees related to the registration preparation, the SEC filing and print related costs. As of June 30, 2025, the Group concludes
its IPO. The deferred IPO costs of HKD7,334,123(US$934,295) have been charged as a reduction against additional paid-in capital upon
the completion of the offering in September 2024. As of June 30, 2025 and 2024, the accumulated deferred IPO cost was niland HKD7,334,123,
respectively.

Long-term rental deposits

Long-term rental deposits
represent security payments made to a lessor for the office lease agreement entered over1year. The Group made such security payments
upon the commencement of the original lease agreement and extended the lease agreement. The security deposit will be refunded to the Group
upon the termination or expiration of the lease agreement as well as the delivery of the vacant leased properties to the lessor by the
Group.

Property and equipment, net

Property and equipment are
stated at cost less accumulated depreciation and impairment if applicable. Depreciation is computed using the straight-line method after
consideration of the estimated useful lives. The estimated useful lives are as follows:

                              Lesser of Lease    
  Leasehold improvements      5 years            
  Furniture and fixtures      5 years            
  Office equipment            5 years            

The cost and related accumulated
depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statements of
income/(loss). Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterment,
which are expected to extend the useful life of assets, are capitalized. The Group also re-evaluates the periods of depreciation to determine
whether subsequent events and circumstances warrant revised estimates of useful lives.

Impairment for long-lived assets

Long-lived assets, including
property and equipment with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant
adverse change to market conditions that will impact the