Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 23

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 23
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 internal control environment, we could suffer material misstatements
in our financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our
reported financial information. This could in turn limit our access to capital markets, harm our results of operations, and lead to a
decline in the trading price of our Ordinary Shares. Additionally, ineffective internal control over financial reporting could expose
us to increased risk of fraud, misuse of corporate assets and legal actions under securities laws and subject us to potential delisting
from the stock exchange on which we list, regulatory investigations and civil or criminal sanctions.

  13  

We
may need additional capital, and financing may not be available on terms acceptable to us, or at all.

Although
our current cash and cash equivalents, anticipated cash flows from operating activities and the proceeds from the IPO will be sufficient
to meet our anticipated working capital requirements and capital expenditures in the ordinary course of business, there is a risk that
we may need additional cash resources in the future to fund our growth plans or if we experience adverse changes in business conditions
or other developments. We may also need additional cash resources in the future if we find and wish to pursue opportunities for new investments,
acquisitions, capital expenditures or similar actions. If we determine that our cash requirements exceed the amount of cash and cash
equivalents we have on hand at the time, we may seek to issue equity or debt securities or obtain credit facilities. We cannot assure
you that financing will be available in amounts or on terms acceptable to us, if at all. The issuance and sale of additional equity would
result in further dilution to our shareholders. The occurrence of any of these risks could adversely affect our operations or financial
condition.

We
are subject to changing laws, rules and regulations in the U. S. regarding regulatory matters, corporate governance and public disclosure
that will increase both our costs and the risks associated with non-compliance.

We
are subject to rules and regulations of various governing bodies and self-regulatory organizations, including, for example, the SEC and
Nasdaq, which are charged with the protection of investors and the oversight of companies whose securities are publicly traded, and to
new and evolving regulatory measures under applicable law. Our efforts to comply with new and changing laws and regulations have resulted
in and are likely to continue to result in increased general and administrative expenses and a diversion of management time and attention
from revenue-generating activities to compliance activities.

Moreover,
because these laws,