Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 113

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 113
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3. The increase was
mainly attributable to the increase in revenue near the year end.

An impairment analysis
is performed at the end of each year. For the year ended September 30, 2022, there was a reversal of allowance for expected credit loss
for $522 was made of the year ended September 30, 2022. There was an allowance for expected credit loss amounting to $33,466 made in
the year ended September 30, 2023.

Deposits and prepayment

Deposits and prepayment
consist of trade deposits, deposits of rental and utility and prepayment paid to suppliers.

Deposits and prepayment
increased significantly by $175,862, or 1524.2% from $11,538 as of September 30, 2022 to $187,400 as of September 30, 2023. The increase
was mainly due to the increase in prepayment with suppliers and related parties.

Contract assets

Contract assets include
billed and unbilled amounts resulting from in-transit shipments, as the Company has an unconditional right to payment only when services
have been completed (i. e., shipments have been delivered). Upon completion of the performance obligations, which can vary in duration
based upon the method of transport, these amounts become classified within accounts receivable. Contract assets increased by $109,081
or 25.1% from $434,757 as of September 30, 2022 to $ 543,838 as of September 30, 2023. The increase was mainly due to more in-transit
deliveries that has not yet delivered to the customers near the year end 2023.

Deferred costs

Deferred offering
costs consist principally of all direct offering costs incurred by the Company, such as underwriting, legal, accounting, consulting,
printing, and other registration related costs in connection with the Initial Public Offering (“ IPO”) of the Company’s
ordinary shares. Such costs are deferred until the closing of the offering, at which time the deferred costs are offset against the offering
proceeds. In the event the offering is unsuccessful or aborted, the costs will be expensed.

Accounts payable

The accounts payable
are derived from logistics and air freight service providers. The accounts payable increased by $1,290,186, or 98.4% from $1,311,067
as of September 30, 2022 to $2,601,253 as