Company: MASK
Filing Date: 2025-01-10
Form Type: 424B4
Source: 0001213900-25-002376
Chunk: 149

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-01-10
Form: 424B4
Chunk 149
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 realized, when it is more -likely - than-notthat some portion, or all, of the deferred tax assets will not be realized. Recent Accounting Pronouncements The Jumpstart Our Business Startups Act (“JOBS Act”) provides that an emerging growth company (“EGC”) as defined therein can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. We have adopted the extended transition period. For detailed discussion on recent accounting pronouncements, please see Note 2 to our consolidated financial statements, “Summary of Significant Accounting Policies”, included elsewhere in this form. Seasonality and customer concentration There is no seasonality in our business operations throughout the year. Our customer base for software development services tends to vary from one year to another, as each purchase agreement tends to be a one -offevent with few repeat customers. A major customer in one year may not provide the same level of revenues for us in any subsequent year. For the exhibition and conference services, we believe that in the foreseeable future we will continue to derive a significant portion of our revenues from a small number of major customers. Factors Affecting Our Results of Operations We believe that the most significant factors that affect our business and financial results include the following: • Our ability to accommodate the business impact of COVID -19. The COVID -19pandemic has caused lockdowns, travel restrictions, and closures of businesses. It adversely affected our business operations. The growth of many industries where our customers operate in China was interrupted by the lockdowns and restrictive policies adopted in response to the COVID -19pandemic, especially in 2021 and 2022. Our revenue for the year ended June30, 2022 decreased by 40.1% compared to the previous year (based on management account). In December 2022, the Chinese government unveiled a series of new COVID -relatedpolicies to loosen its zero -COVIDpolicy, and lifted the prevention and control measures that were in place for the COVID -19pandemic. Our operation and financial performance gradually improved and stabilized during the year ended June30, 2023, which resulted in an increase of revenue of 28.9% compared to the 78 year ended June30, 2022. The situation continuously improved during the year ended June30, 2024 where revenue increased by 173.0% compared to the year ended June30, 2023. Based on