Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 112

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 112
---
Net cash used in financing activities was $44,557
for 2024 and was primarily attributable to repayments of bank borrowings.

Net cash used in financing activities was $154,976
for 2023 and was primarily attributable to repayments of bank borrowings.

  67  

Net cash provided by financing activities was $17,397,802
for 2022 and was primarily attributable to proceeds from public offering of $18,048,369; offset by (i) payments
of finance lease liability of $8,391, and (ii) repayment of bank borrowings of $642,176.

Capital Expenditures

We had capital expenditures of $115,161 and $1,360,274
for 2024 and 2023, respectively. Our capital expenditures were mainly used for purchases of production equipment
and office equipment. We intend to fund our future capital expenditures with lease financing, if available, proceeds from our offering
and other financing alternatives. We will continue to make capital expenditures to support the growth of our business.

Bank Facility

On November 3, 2017, Kambo Locksets Limited obtained
banking facilities from the Bank of China (Hong Kong) Limited pursuant to which it may borrow up to HK$ 6.0 million (approximately $0.8
million) for working capital purposes. On June 24, 2021, this banking facilities was increased to HK$ 7.0 million (approximately $0.9
million). The credit facility bears interest at 5.5% and it is personally guaranteed by Mr. Wynn Hui and Mr. Bong Lau (both major shareholders
and directors of the Company). The credit facility does not have an expiration date and is collateralized by a property owned by Kambo
Security Products Limited, a related party.

Off-Balance Sheet Arrangements

We have not entered into any financial guarantees
or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that
are indexed to our shares and classified as shareholders’ equity or that are not reflected in our consolidated financial statements.

5C. Research and Development, Patents and Licenses, etc.

See “ Item 4. Information on the Company - B.
Business Overview - ” Intellectual Property.”

D. Trend Information

Other than as disclosed elsewhere in this annual report,
we are not aware of any trends, uncertainties, demands, commitments or events from January 1, 2024