Financial Performance - For FY2023, the net cash provided by operating activities was approximately HK$3.4 million, while for FY2025, it was a net cash used of approximately HK$6.0 million, reflecting a net loss of approximately HK$7.9 million[250][251]. - The net cash used in investing activities for FY2025 was approximately HK$69.1 million, primarily due to the acquisition of a subsidiary, while for FY2023, it was HK$46,932[252][253]. - For FY2025, net cash from financing activities was approximately HK$83.9 million, mainly from the issuance of ordinary shares for general working capital and an initial public offering[254]. Liquidity and Financial Position - The current ratio improved from approximately 1.5 as of June 30, 2024, to 3.0 as of June 30, 2025, indicating enhanced liquidity[246]. - As of June 30, 2025, the company had cash and cash equivalents of approximately HK$10.6 million and current assets of approximately HK$32.4 million[246]. - The Company is exposed to liquidity risk and aims to maintain sufficient liquidity to meet its liabilities under both normal and stressed conditions[380]. - As of June 30, 2025, the Company had no outstanding bank borrowings, indicating a strong liquidity position[381]. - The Company will seek short-term funding from financial institutions if necessary to address liquidity shortages[380]. Capital Expenditures and Investments - Capital expenditures for FY2025 amounted to approximately HK$631,732, compared to HK$46,932 for FY2023[260]. - The company acquired Top Spin, which holds Care U, with a contingent consideration asset recognized at a fair value of HK$1.68 million (US$215,385) on the acquisition date[272][273]. - Goodwill recognized from the acquisition of Top Spin amounted to HKD69,517,007 (US$8,912,437) and was allocated entirely to the Care U reporting unit[284]. Asset Management and Impairment - No impairment of long-lived assets was recognized for the year ended December 31, 2023, and the six months ended June 30, 2024, and the year ended June 30, 2025[281]. - The recoverability of long-lived assets is measured by comparing the carrying amount to future undiscounted net cash flows expected to be generated[281]. - Impairment testing involves significant management judgment, including identifying reporting units and estimating fair values[283]. - Goodwill is tested for impairment annually or more frequently if events indicate potential impairment, following ASC 350 guidelines[283]. - A qualitative assessment post-acquisition indicated that the fair value of the Care U reporting unit exceeded its carrying amount, resulting in no impairment of goodwill[284]. Risk Management - The Company has not been exposed to material risks due to changes in interest rates, although future increases may raise the cost of any debt incurred[381]. - The company did not engage in any material off-balance sheet transactions or arrangements in FY2023 and FY2025[256]. - The company has no research and development activities and relies on trademark law and confidentiality agreements to protect its intellectual property[264][265].
Click Holdings Limited(CLIK) - 2025 Q4 - Annual Report