Company: MEGL
Filing Date: 2025-06-09
Form Type: F-1/A
Source: 0001641172-25-014301
Chunk: 185

Company: Magic Empire Global Ltd
Filing Date: 2025-06-09
Form: F-1/A
Chunk 185
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   |
| 2027                              |     |              | 1,506,120 |   |     |     | 193,895 |   |
| Total future lease payments       |     |              | 4,638,665 |   |     |     | 597,173 |   |
| Less: imputed interest            |     |              |  (370,720 | ) |     |     | (47,726 | ) |
| Present value of lease obligation |     |              | 4,267,945 |   |     |     | 549,447 |   |

The weighted-average discount rate used to determine the operating lease liability as of December 31, 2024 and 2023 was 5.375% and 5.000%, respectively.

6. LONG-TERM INVESTMENT

The Group’s long-term investments consist of equity investments in private companies and in an investment fund.

For equity investments without readily determinable fair value, and over which we do not have the ability to exercise significant influence and do not qualify for the NAV practical expedient of the investment, we use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. Significant judgments are required to determine (i) whether observable price changes are orderly transactions and identical or similar to an investment held by us, and (ii) the selection of appropriate valuation methodologies and underlying assumptions, including expected volatility and the probability of exit events as it relates to liquidation and redemption features used to measure the price adjustments for the difference in rights and obligations between instruments.

|                                                     |     | Long-term   
 Investments |             |   |     | Total |             |   |     | Total |            |   |
|                                                     |     | HK$         |             |   |     | HK$   |             |   |     | US$   |            |   |
| Balance as of January 1, 2023                       |     |             |  14,500,000 |   |     |       |  14,500,000 |   |     |       |  1,866,704 |   |
| Addition                                            |     |             |  26,110,738 |   |     |       |  26,110,738 |   |     |       |  3,361,450 |   |
| Loss due