Company: EGG
Filing Date: 2025-04-22
Form Type: F-1/A
Source: 0001641172-25-005604
Chunk: 30

Company: ENIGMATIG LTD
Filing Date: 2025-04-22
Form: F-1/A
Chunk 30
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 could adversely affect our business, financial condition, and results of operations.

Our ability to maintain close relationships with major customers is essential to the success of our business. We received a substantial portion of our corporate services income from a limited number of customers. For the years ended September 30, 2022, 2023 and 2024, corporate services income generated from our two largest customers accounted for approximately 46.3%, 54.7% and 47.9%, respectively, and corporate services income generated from our largest customers accounted for approximately 33.0%, 30.9% and 27.7%, respectively. Corporate services income from our largest customer for the year ended September 30, 2022 was related to a one-off transaction, which is not expected to recur in the future. Although this customer continued to engage with us for other services for the year ended September 30, 2023, we cannot assure you that the volume of corporate services income from this customer will remain consistent in the future. Additionally, corporate services income from our second largest customer for the year ended September 30, 2023 was also related to a one-off transaction, which is not expected to recur in the future. We cannot assure you that any of our customers in the future will not cease purchasing services from us in favor of services from our competitors, significantly reduce orders or seek price reductions in the future, and any such event could have a material adverse effect on our corporate services income, profitability, and results of operations.

We have incurred negative operating cash flow in the past, which we may continue to experience in the future.

We have incurred negative operating cash flow in the past. For the year ended September 30, 2022, 2023 and 2024, we had negative operating cash flow of US$340,755, US$58,677 and US$602,871, respectively. We expect our costs and expenses to increase as we expand our operations, primarily including payroll expenses and third party professional fees. Our ability to achieve positive operating cash flow principally depends on our ability to maintain and further expand our customer base, increase our corporate services income and control our costs and expenses, but we cannot assure you that our customer base will maintain the growth momentum. In addition, our ability to achieve and sustain positive operating cash flow is affected by various factors, some of which are beyond our control, such as changes in regulatory policy and macroeconomic conditions or competitive dynamics in the industry. If we cannot effectively maintain or