Company: AGCC
Filing Date: 2025-10-22
Form Type: 424B4
Source: 0001213900-25-101076
Chunk: 213

Company: Agencia Comercial Spirits Ltd.
Filing Date: 2025-10-22
Form: 424B4
Chunk 213
---
 the respective sales contracts. The timing of revenue recognition is determined by the transfer of control and risk associated with the goods to the customer. For overseas sales under the Free on Board (FOB) shipping point incoterm, revenue is recognised when the goods are loaded onto the vessel at the specified shipping point, at which point control and risks related to the goods are transferred to the buyer. In the case of overseas sales under Cost, Insurance, and Freight (CIF) destination incoterm, revenue is recognised upon delivery of the goods to the specified destination port, where control and risks related to the goods are transferred to the buyer.

F-18

AGENCIA COMERCIAL SPIRITS LTD NOTES TO THE COMBINED FINANCIAL STATEMENTS FOR THE FINANCIAL YEARS ENDED DECEMBER 31, 2023 AND 2024 8.REVENUE FROM CONTRACTS WITH CUSTOMERS (cont.) 3.Contractual Liabilities According to the contract terms, the following situations may affect the fulfillment of performance obligations and revenue recognition: • Force Majeure: If delivery is delayed due to natural disasters or other force majeure events, Company shall negotiate with customer, which may affect the timing of revenue recognition. • Breach of Contract: If customer fails to pay the agreed price, the Company has the right to terminate the contract and request the return of the goods. If the Company fails to deliver the agreed goods, they will bear the corresponding liability and pay penalties. This disclosure aims to provide stakeholders with a clear understanding of the nature and timing of revenue recognized from contracts with customers. 9.LEASES The Company leases office and warehouse premises under operating lease agreements. During the financial years ended December 31, 2023 and 2024, the Company entered into two operating lease agreements with related parties, with lease terms of 72 months and 60 months, respectively. With reference to market rate for similar premises with similar location, the Company is of the opinion that these lease agreements are able to represent arm’s length transactions between the Company and the related parties. As of December 31, 2023 and 2024, the Company has not entered into any sublease agreements and the leases do not include any residual value guarantees or covenants. The following represents the aggregate operating ROU assets and related operating lease liabilities as of December 31, 2023 and 2024:

|                                         |     | As of December 31, |     |        |
|                                         |     |