Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 276

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 276
---
For the six months
periods ended December 31, 2024 and 2023, the Group did not recognize any gain or loss from disposal of property and equipment.

j) Impairment of long-lived assets

All long-lived assets, which
include tangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the
carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount
of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying
amount of the asset and its fair value.

For the six months ended
December 31, 2024 and 2023, the Group did not recognize any impairment loss on long-lived assets.

k) Deferred IPO costs

Deferred IPO costs consist
of legal, accounting, underwriting fee and other costs incurred through the balance sheet date that are directly related to the proposed
public offering. These costs, together with the underwriting discounts and commissions, will be charged to additional paid-in capital
upon completion of the proposed public offering. Should the proposed public offering prove to be unsuccessful, the deferred cost, as well
as additional expenses to be incurred, will be charged to operations.

<div align='center'>F-35

3 E NETWORK TECHNOLOGY GROUP LIMITED
NOTES TO INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</div>

2. Summary of Significant Accounting Policies (cont.)

l) Fair value of financial instruments

The Group’s financial
instruments primarily consist of cash and cash equivalents, accounts receivable, net, due from related parties, accounts payable and due
to a related party. The carrying values of these financial instruments approximate fair values due to their short maturities.

Fair value is defined as the
exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants on the measurement date. This note also establishes
a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are
three levels of inputs that may be used to measure fair value:

| Level 1 | — | Quoted prices in active markets for identical 
 assets or