Company: GINT
Filing Date: 2025-05-19
Form Type: DRS/A
Source: 0001213900-25-045183
Chunk: 209

Company: Gifts International Holdings Ltd
Filing Date: 2025-05-19
Form: DRS/A
Chunk 209
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MENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.) •Cost of Revenues Cost of revenues consists primarily of the cost of floral and non -floralmerchandise sold from inventory or through third parties, bouquet fulfillment costs, and the cost associated with wrapping and packaging. •Shipping and Handling Costs Shipping costs incurred to deliver the products from the workshop to the designated location of the customer orders totaled HK$2,271,545 and HK$2,667,057 (US$343,282) for the six months ended September 30, 2023 and 2024, respectively. •Sales and Marketing Costs Marketing and sales expense consists primarily of advertising expenses, online portal and e -catalogexpenses and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities. The Company expenses all advertising costs, at the time the advertisement is first shown. Advertising expense was HK$4,718,209 and HK$3,447,866 (US$443,781) for the six months ended September 30, 2023 and 2024, respectively. •Technology and Development Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfilment and database systems. Costs associated with repair maintenance, or the development of website content are expensed as incurred. •Segment Reporting ASC Topic 280, Segment Reporting(“ASC 280”), establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. For the six months ended September 30, 2023 and 2024, the Company operates and manages its business as one single business segment, in accordance with ASC 280. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The Company’s CODM assesses the Company’s performance and results of operations on a consolidated basis. The Company generates substantially all of its revenues from customers in Hong Kong. Accordingly, no geographical segments are presented. Substantially, all of the Company’s long -livedassets are located in Hong Kong. •Retirement Plan Costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying