Company: MASK
Filing Date: 2025-12-02
Form Type: POS AM
Source: 0001185185-25-001899
Chunk: 251

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-02
Form: POS AM
Chunk 251
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 along with reasonable and supportable forecasts as a basis to develop the Group’s expected loss estimates.
The Group adjusts the allowance percentage periodically when there are significant differences between estimated credit losses and actual
credit losses. If there is strong evidence indicating that the accounts receivable is likely to be unrecoverable, the Group also makes
specific allowance in the period in which a loss is determined to be probable. Account balances are charged off against the allowance
after all means of collection have been exhausted and the potential for recovery is considered remote.

i) Impairment of long-lived assets

All long-lived assets, which
include tangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the
carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying
amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between
the carrying amount of the asset and its fair value.

For the year ended June
30, 2025 and 2024, the Group did not recognize any impairment loss on long-lived assets.

j) Deferred IPO costs

Deferred IPO costs consist
of legal, accounting, underwriting fee and other costs incurred through the balance sheet date that are directly related to the proposed
public offering. These costs, together with the underwriting discounts and commissions, will be charged to additional paid-in capital
upon completion of the proposed public offering. Under the circumstances when the proposed public offering prove to be unsuccessful,
the deferred cost and related additional expenses incurred will be directly expensed.

k) Fair value of financial instruments

The Group’s
financial instruments primarily consist of cash and cash equivalents, accounts receivable, net, due from related parties, accounts payable
and due to a related party. The carrying values of these financial instruments approximate fair values due to their short maturities.

<div align='center'>F-10

3 E NETWORK TECHNOLOGY GROUP LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

2. Summary of Significant Accounting Policies(cont.)

Fair value
is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.