Company: EGG
Filing Date: 2025-04-24
Form Type: F-1/A
Source: 0001641172-25-005939
Chunk: 83

Company: ENIGMATIG LTD
Filing Date: 2025-04-24
Form: F-1/A
Chunk 83
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Gross profit & gross profit margin

Our gross profit increased by US$1,903,887 or 154.7% from US$1,230,929 for the year ended September 30, 2022 to US$3,134,816 for the year ended September 30, 2023. This increase was primarily driven by (i) the significant increase in corporate services income in the year ended September 30, 2023 and (ii) the decrease in cost of sales. Our gross profit margin increased significantly from 43.6% in Fiscal 2022 to 68.0% in Fiscal 2023. This significant increase in gross profit margin was driven by (i) increased economies of scale as our corporate services income increased in Fiscal 2023 while staff costs included in cost of sales, our largest component cost of sales actually decreased from US$606,079 for the year ended September 30, 2022 to US$425,284 for the year ended September 30, 2023 as our total number of full time employees fell from 17 employees as of September 30, 2022 to 14 employees as of September 30, 2023 and (ii) corporate services income of US$677,108 from a one-off transaction relating to the enhancement and sale of our old CRM system to a client in Fiscal 2023 for which there were minimal associated costs.

Payroll and employee benefits

Payroll and employee benefits
increased by US$591,076, or 329.6%, from US$179,335 for the year ended September 30, 2022 to US$770,411 for the year ended September
30, 2023. The increase of payroll and employee benefits was primarily driven by an increase in payroll and employee benefits for Mr.
Foo Chee Weng Desmond, our CEO and Mr. Mingwen Teo, our CFO from US$127,190 for the year ended September 30, 2022 to US$605,826
for the year ended September 30, 2023 as they chose to enact a salary and bonus freeze starting in mid 2022 to deal with the financial
difficulties presented by COVID-19. Payroll for Mr. Foo Chee Weng Desmond and Mr. Mingwen Teo resumed in February 2023 and March 2023,
respectively, and they both receive a one-off bonus in Fiscal 2023. This increase was partially offset by