Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 187

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 5
Chunk 187
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,096,016 as of September 30, 2023, the increase was mainly due to the increase of accrued offering costs and audit expenses.
 
Lease liabilities – current
 
Our lease liabilities represented the current portion of the operating lease of our Hong Kong office and warehouse.
 

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Effective October 1, 2020, the Company adopted the new lease accounting standard using a modified retrospective transition method, which allows the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allows the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.
 
The Company’s management believes that the Hong Kong Dollar Best Lending Rate (“BLR”) was the most indicative rate of the Company’s borrowing cost for the calculation of the present value of the lease payments; the rate used by the Company as quoted by the BLR minus 2.5%
 
Cash Flow
 
Our use of cash is primarily related to operating activities, payment of dividends and payment of deferred IPO cost. We have historically financed our operations primarily through our cash flow generated from our operations. The following table sets forth a summary of our cash flows information for the years indicated:

                                                                                     Years ended September 30,                               
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                                                       2022                         2023                           2024                      
Net cash provided by operating activities                           $783,045                     $2,021,831                      $326,089    
Net cash used in investing activities                                 (9,247    )                    (7,455    )                 (592,585   )
Net cash (used in) provided by financing activities               (1,244,502    )                (2,017,979    )                2,008,826    
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                (470,704    )                    (3,603    )                1,742,330    
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                     1,028,439