Revenue and Customer Contributions - For the fiscal year ended September 30, 2025, Customer B accounted for 32.67% of the company's revenue, generating HK$34.93 million (US$4.49 million) and had accounts receivable of HK$5.25 million (US$0.67 million) [235] - For the fiscal year ended September 30, 2024, Customer D contributed 28.52% of the company's revenue with HK$25.01 million and had accounts receivable of HK$4.88 million [236] Purchases and Vendor Contributions - For the fiscal year ended September 30, 2025, Vendor C represented 31.85% of the company's purchases, totaling HK$27.27 million (US$3.50 million) with accounts payable of HK$12.02 million (US$1.54 million) [237] Liquidity and Financial Management - The company regularly monitors liquidity requirements and maintains sufficient cash reserves and committed lines of funding to meet short and long-term liquidity needs [238] - The company is exposed to interest rate risk primarily related to variable-rate import facilities, with no derivative instruments currently used to mitigate this risk [239] - As of September 30, 2024 and 2025, the company had no outstanding forward exchange or foreign currency option contracts to hedge against foreign currency risk [240] Accounting Policies and Estimates - The company prepares financial statements in accordance with U.S. GAAP, which involves significant accounting estimates that could differ from actual results [243] - Accounts receivable are recorded at gross billing amounts less allowances for uncollectible accounts, with credit terms ranging from 30 to 90 days [248] - Revenue is recognized at the point of delivery when control of goods is transferred to customers, in compliance with ASC Topic 606 [250] - The company adopts ASU 2016-02 "Leases (Topic 842)" for lease accounting, requiring recognition of lease assets and liabilities for leases over twelve months [263] - The Company recognizes all leases as operating leases, with no leases having a duration of twelve months or less [266] - ROU assets and liabilities are measured based on the present value of lease payments, using the implicit rate or incremental borrowing rate [265] - Contributions to retirement plans are charged to general and administrative expenses as employee services are provided [267] - The Company uses the projected unit credit method for measuring long service payments under defined benefit plans [268] - Share-based compensation expense is recognized on a straight-line basis over the requisite service period, based on fair value at grant date [269] - Significant accounting estimates include useful lives of assets, impairment of long-lived assets, and revenue recognition [280] Economic Factors and Trends - The Company has not experienced material impacts from inflation on its financial performance for the years ended September 30, 2024 and 2025 [278] - Seasonal fluctuations affect sales volume, with higher sales leading up to Christmas and during fall/winter seasons [277] - The Company is evaluating the impact of ASU No. 2025-05 on its consolidated financial statements, which is expected to enhance disclosures [275] - The Company does not anticipate any trends or uncertainties that would materially affect its financial performance [279]
707 Cayman Holdings Ltd(JEM) - 2025 Q4 - Annual Report