| Summary of significant accounting policies | Note 3 — Summary of significant accounting
policies Basis of presentation The accompanying consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of consolidation The consolidated financial
statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances are eliminated upon consolidation. Use of estimates and assumptions The preparation of consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities including provision for doubtful accounts, and disclosures of contingent assets and liabilities as of the date
of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results
could differ from these estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements
include the estimates of provision for credit losses. Earnings per share Basic earnings per share is
computed by dividing net income attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding
during period presented. Diluted income per share is calculated by dividing net income attributable to the holders of ordinary shares
as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive
ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the
diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is
recorded. Foreign currency translation and transaction The Company uses Hong Kong
Dollar (“HKD”) as its reporting currency. The functional currency of the Company and its subsidiary in British Virgin Islands
is United States Dollar (“US$”) and its subsidiary which is incorporated in Hong Kong is HKD, which is its respective local
currency based on the criteria of ASC 830, “Foreign Currency Matters”. In the consolidated financial
statements of the Company, transactions in currencies other than the functional currency are measured and recorded in the functional currency
using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are
denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the
balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the income statements during the year
in which they occur. Convenience translation
Translations of balances
in the consolidated balance sheets, consolidated statements of income and comprehensive income, consolidated statements of changes
in shareholders’ equity and consolidated statements of cash flows from HKD into US$ as of June 30, 2024 are solely for the
convenience of the readers and are calculated at the rate of US$1.00=HKD 7.8083 representing the exchange rate set forth in the H.10
statistical release of the Federal Reserve Board on June 28, 2024. No representation is made that the HKD amounts could have been,
or could be, converted, realized or settled into US$ at such rate, or at any other rate. Fair value measurement The accounting standard regarding
fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair
value of financial instruments held by the Company. The accounting standards define
fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements
for fair value measures. The three levels are defined as follow:
● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
● Level 3 inputs to the valuation methodology are unobserved and significant to the fair value. Financial instruments included
in current assets and current liabilities are reported in the balance sheets at face value or cost because of the short period of time
between the origination of such instruments and their expected realization and their current market rates of interest. Related Parties T he
Company for related party transactions in accordance with FASB Accounting Standards
Codification (ASC) Topic 850 (Related Party Disclosures). A party is considered to be related to the Company if the party directly or
indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties
also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and
its management and other parties with which the Company may deal if one party controls or can significantly influence the management or
operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate
interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership
interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting
parties might be prevented from fully pursuing its own separate interests is also a related party. Revenue recognition The Company generates revenues
from fees charged for the professional services, including cloud services and data center managed services, and telecommunication, consultancy
and related services provided to its clients. The Company adopted ASC Topic 606, Revenue from Contracts with Customers,
for all periods presented. The five-step model defined by ASC Topic 606 requires the Company to (1) identify its contracts with customers,
(2) identify its performance obligations under those contracts, (3) determine the transaction prices of those contracts, (4) allocate
the transaction prices to its performance obligations in those contracts and (5) recognize revenue when each performance obligation under
those contracts is satisfied. Revenues are recognized when
control of the promised services and deliverables are transferred to the Company’s clients in an amount that reflects the consideration
the Company expects to be entitled to and receive in exchange for services and deliverables rendered. The Company has elected to
apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations
that have original expected durations of one year or less. The Company elected a practical
expedient that it does not adjust the promised amount of consideration for the effects of a significant financing component if the Company
expects that, upon the inception of revenue contracts, the period between when the Company transfers its promised services or deliverables
to its clients and when the clients pay for those services or deliverables will be one year or less. As a practical expedient,
the Company elected to expense the incremental costs of obtaining a contract when incurred if the amortization period of the asset that
the Company otherwise would have recognized is one year or less. Cloud services and data center managed services Cloud services and data center
managed services include offering system and software development, business planning, development, technical and operations consulting
programs structured to target the cloud and data center providers in the region. The revenues generated from
cloud services and data center managed services are generally based on the fixed fee billing arrangements that require the clients to
pay a pre-established fee in exchange for a predetermined set of services. For the project development services, the Company designs systems based
on clients’ specific needs which require the Company to perform services including design, development, and integration. The contract
is typically fixed priced and does not provide any post contract client support or upgrades. The Company concludes there is only one performance
obligation as a series of tasks within the contract are interrelated and are not separable or distinct, and the client cannot benefit
from any standalone task. The Company recognizes revenue for this type of services over time by
applying the input method For the recurring services, the Company delivers cloud services and
data center managed services, and related maintenance service on a monthly basis throughout the contract terms. The Company concludes
that each monthly service (1) is distinct, (2) meets the criteria for recognizing revenue over time, and (3) has the same method for measuring
progress. In addition, the Company concludes that the services provided each month are substantially the same and result in the transfer
of substantially the same service to the customers each month. That is, the benefit consumed by the customers is substantially the same
for each monthly transaction, even though the exact volume of services may vary each month. Therefore, the Company concludes that the
monthly cloud services and data center managed services satisfy the requirements of ASC 606-10-25-14(b) to be accounted for as a single
performance obligation. The entire transaction prices are allocated to the single performance obligation. The Company recognizes
revenue on a straight-line basis since the customer receives value as the services are rendered continuously during the term of the contract. There is no variable consideration, significant
financing components or noncash consideration in the contracts. Telecommunication, consultancy and related
services The Company provides consultancy
services to telecom operators, including one-stop telecom license application services adapted to each client’s specific needs.
In these arrangements, the fees are based on the attainment of contractually defined objectives with the customers, such as completing
a business transaction or assisting the client in obtaining a telecom license. The Company recognizes revenues over time by applying the input method. The
Company also provides maintenance services to telecom operators to assist them to fulfil the statutory requirements. For the Company’s services rendered on an annual basis, the Company
concludes that the services provided each month during the annual service term (1) are distinct, (2) meet the criteria for recognizing
revenue over time, and (3) have the same method for measuring progress. In addition, the Company concludes that the services provided
each month are substantially the same and result in the transfer of substantially the same services to the customers each month. That
is, the benefits consumed by the customers are substantially the same for each monthly transaction, even though the exact volume of services
may vary each month. Therefore, the Company concludes that the monthly telecommunication maintenance services satisfy the requirements
of ASC 606-10-25-14(b) to be accounted for as a single performance obligation. The Company recognizes revenue on a straight-line
basis since the customer receives value as the services are rendered continuously during the term of the contract . There is no variable consideration,
significant financing components or noncash consideration in the contracts. Cost of Revenues Cost of revenues consists
of cost of consultants or subcontractors assigned to revenue-generating activities, employee compensation and other third-party costs
directly attributable to the Company’s revenue-generating activities. Cash Cash primarily consist of
bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. The Company maintains
its bank accounts in Hong Kong. Deposit accounts
denominated in Hong Kong Dollars, or any other currencies at the banks and financial institutions who are the members of Deposit
Protection Scheme will be covered up to a limit of HKD 500,000 (approximately US$64,034) per depositor per scheme member by Hong
Kong Deposit Protection Board in an event of bank failure. As of June 30, 2024 and 2023, cash balances, HKD 7,406,293 (US$948,515)
and HKD 5,629,509, respectively, held in the financial institutions in Hong Kong are uninsured. The Company has not experienced any
losses in bank accounts and believe its credit risk is not significant. Accounts receivable, net On July 1, 2023, the Company
adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC
326”). ASC 326 requires the application of a credit loss model based prospectively on current expected credit losses (CECL), and
replaces the previous model based retrospectively on past incurred losses. The Company adopted ASC 326 using the modified retrospective
method for all financial assets measured at amortized cost, of which the Company reported only accounts receivable as of June 30, 2023.
Results for reporting periods beginning July 1, 2023 are presented under ASC 326. The Company concludes that there is no impact over the
initial adoption of CECL model, which should be treated as cumulative-effect adjustment on accumulated deficits as of June 30, 2023. The Company carries accounts receivable at the face amounts less a
reserve for estimated credit losses. The Company estimated its reserve for credit losses using relevant available information from internal
and external sources relating to past events such as aging schedule of receivables, migration rate of receivables, assessment of receivables
due from specific identifiable counterparties that are considered at risk or uncollectible, current conditions and reasonable and supportable
forecasts. As of June 30, 2024 and 2023,
the Company recognized provision for credit losses of HKD 99,775 (US$12,778) and HKDNil Prepayment and deposits Prepayments are cash deposited
or advanced to suppliers for the purchase of goods or services that have not been received or provided. This amount is refundable and
bears no interest. Deposits consist of (i) security payments made to utilities companies and are refundable upon termination of services;
(ii) security payments made to a lessor for the Company’s office lease agreement. The security deposit will be refunded to the Company
upon the termination or expiration of the lease agreement as well as the delivery of the vacant leased properties to the lessor by the
Company; and (iii) deposit to suppliers for providing the services, which are refundable. Other receivables include out of pocket expenses
to be collected from the clients. Deferred IPO costs Pursuant to ASC 340-10-S99-1,
IPO costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of the
offering as a reduction of additional paid-in capital. These costs include legal fees related to the registration drafting and counsel,
consulting fees related to the registration preparation, the SEC filing and print related costs. As of June 30, 2024 and 2023, the accumulated
deferred IPO cost was HKD 5,587,622 (US$715,600) and HKD 4,226,062, respectively. Property and equipment, net Property and equipment are
stated at cost less accumulated depreciation and impairment if applicable. Depreciation is computed using the straight-line method after
consideration of the estimated useful lives. The estimated useful lives are as follows: Estimated Leasehold improvements Shorter of 2 years or the remaining lease term Computer equipment 4 years Furniture and fixtures 4 years Motor Vehicles 5 years The cost and related accumulated
depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statements of
operations. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterment, which
are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine
whether subsequent events and circumstances warrant revised estimates of useful lives. Impairment for long-lived assets Long-lived assets, including property and equipment with finite lives
are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that
will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. When these events occur,
the Company evaluates the impairment for the long-lived assets by comparing the carrying value of the assets with an estimate of future
undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected
future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess
of the carrying value of the assets over the fair value of the assets. As of June 30, 2024 and 2023, no impairment of long-lived assets
was recognized. Contract assets and contract liabilities Billing practices for the
Company’s contracts are governed by the contract terms of each project and are typically based on (i) progress toward completion
approved by customers, (ii) achievement of milestones or (iii) pre-agreed schedules. Billings do not necessarily correlate with revenues
recognized under the cost-to-cost input method (formerly known as the percentage-of-completion method). The Company records contract assets
and contract liabilities to account for these differences in timing. The contract asset, “Costs
and estimated earnings in excess of billings on uncompleted contracts,” arises when the Company recognizes revenues for services
performed, but the Company is not yet entitled to bill the customer under the terms of the contract. The contract liability, “Billings
in excess of costs and estimated earnings on uncompleted contracts,” represents the Company’s obligation to transfer to a
customer goods or services for which the Company has been paid by the customer or for which the Company has billed the customer under
the terms of the contract. Revenue for future services reflected in this account are recognized, and the liability is reduced, as the
Company subsequently satisfies the performance obligation under the contract. Employee benefits Under Hong Kong
Mandatory Provident Fund Schemes Ordinance, an employer shall enroll their regular employees in Mandatory Provident Fund Schemes.
Regular employees are those who are at between 18 and 65 years of age and have been employed for consecutive 60 days or more. An
employer is required to make regular mandatory contributions at least 5% of the employee’s monthly income between HKD 7,100
and HKD 30,000 and HKD 1,500 of the employee’s monthly income over HKD 30,000. Segment reporting The
Company operates and manages its business as a single segment, in accordance with ASC 280, Segment Reporting. The Company’s chief
operating decision maker (“CODM”) is the Chief Executive Officer. The Company’s CODM assess the Company’s performance
and results of operations on a consolidated basis. The Company generates substantially all of its revenues from clients in Hong Kong.
Accordingly, no geographical segments are presented. Substantially all of the Company’s long-lived assets are located in Hong Kong. Leases In February 2016, the FASB
issued ASU 2016-12, Leases (ASC Topic 842), which amends the leases requirements in ASC Topic 840, Leases. Under the new lease accounting
standard, a lessee will be required to recognize a right-of-use assets and lease liabilities for most leases on the balance sheets. The
new standard also modifies the classification criteria and accounting for sales-type and direct financing leases, and enhances the disclosure
requirements. Leases will continue to be classified as either finance or operating leases. The Company adopted ASC Topic
842 using the modified retrospective transition method effective July 1, 2021. The Company determines if an arrangement is a lease at
inception. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date.
The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate based
on the information available at the lease commencement date. The Company generally uses the base, non-cancellable lease term in calculating
the right-of-use assets and lease liabilities. The Company may recognize
the lease payments in the consolidated statements of income on a straight-line basis over the lease terms and variable lease payments
in the periods in which the obligations for those payments are incurred, if any. The lease payments under the lease arrangements are fixed. The Company elected the practical
expedients for an entity ongoing accounting and applied the short-term lease expedient for lease arrangements with a lease term of 12
months or less at commencement. Lease terms used to compute the present value of lease payments do not include any option to extend, renew
or terminate the lease that the Company is not able to reasonably certain to exercise upon the lease inception. Accordingly, operating
lease right-of-use assets and liabilities do not include leases with a lease term of 12 months or less. The Company did not adopt
the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. Non-lease
components include payments for building management, utilities and property tax. It separates the non-lease components from the lease
components to which they relate. Operating lease expense is
recognized on a straight-line basis over the lease term. For the years ended June 30, 2024, 2023 and 2022, the Company’s operating
lease expense was HKD 388,807 (US$49,794), HKD 402,063 and HKD 325,651, respectively. The Company evaluates the
impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability
of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable.
The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted
future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of finance and operating lease
liabilities in any tested asset group and include the associated lease payments in the undiscounted future pre-tax cash flows. For the
years ended June 30, 2024, 2023 and 2022, the Company did not have any impairment loss against its operating lease ROU assets. Income taxes Global Engine Group Holding
Limited and Global Engine Holdings Limited are not subject to tax on income or capital gains under the current laws of the British Virgin
Islands. In addition, upon payments of dividends by the Global Engine Holdings Limited and the Company’s subsidiary in Hong Kong,
Global Engine Limited to the Company’s shareholders, no British Virgin Islands withholding tax will be imposed. Global Engine Limited is incorporated
in and carries trade and business in Hong Kong Special Administrative Region and is subject to Hong Kong profits tax under Inland Revenue
Department Ordinance. Under relevant Hong Kong tax laws, tax case is normally subject to investigation by the tax authority for up to
6 years of assessment prior to the current year of assessment, if in a case of fraud or willful evasion, then the investigation can be
extended to cover 10 years of assessment. No taxable income was generated
outside Hong Kong for the years ended June 30, 2024, 2023 and 2022. The Company accounts for income tax in accordance with U.S. GAAP.
Provision for income taxes consists of taxes currently due plus deferred tax. The charge for taxation is
based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date. Deferred tax is accounted
for using the asset and liability method with respect to temporary differences arising from between the carrying amount of assets and
liabilities in the financial statements and the corresponding tax basis used in the computation of assessable tax profit. Deferred tax
liabilities are recognized for all future taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable
that taxable income will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using
tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or
credited in the statement of operations, except when it is related to items credited or charged directly to equity. Deferred tax assets
are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred
tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position
is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination,
with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely
of being realized upon examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The
Company had no uncertain tax position as of June 30, 2024 and 2023. The Company does not expect that its assessment regarding unrecognized
tax positions will materially change over the next 12 months. Commitments and Contingencies In the normal course of business,
the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range
of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines
it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making
these assessments including historical and the specific facts and circumstances of each matter. Concentration of Risks Concentration of credit risk Financial instruments that
potentially expose the Company to concentrations of credit risk consist primarily of cash and account receivable. The Company places its
cash with financial institutions with high-credit ratings and quality. The Company’s credit risk with respect to cash is discussed
under “Cash” in this section. Accounts receivable primarily comprise of amounts receivable from the
clients serviced. To reduce credit risk, the Company performs on-going credit evaluations of the financial condition of these service
clients. The Company establishes a provision for credit losses based upon estimates, factors surrounding the credit risk of specific service
clients and other relevant information. Concentration of customers As of June 30, 2024, a customer
accounted for 90.0% of the Company’s total accounts receivable. As of June 30, 2023, three customers accounted for 45%, 28.7% and
22.5%, respectively, of the Company’s total accounts receivable. For the year ended June 30,
2024, three major third-party customers accounted for 63.3%, 15.8% and 15.7%, respectively, of the Company’s total revenues. For
the year ended June 30, 2023, three third-party customers accounted for 33.9%, 15.5% and 13.2%, respectively, of the Company’s total
revenues, and one related-party customer accounted for 19.0% of the Company’s total revenues. For the year ended June 30, 2022,
two major third-party customers accounted for 33.1% and 23.8%, respectively, of the Company’s total revenues, and one related-party
customer accounted for 21.9% of the Company’s total revenues. Concentration of vendors As of June 30, 2024, a vendor
accounted for 91.5% of the Company’s total accounts payable. As of June 30, 2023, two vendors accounted for 63.5% and 36.5%, respectively,
of the Company’s total accounts payable. For the year ended June 30,
2024, two vendors accounted for 77.7% and 17.4%, respectively, of the Company’s total purchases. For the year ended June 30, 2023,
two vendors accounted for 73.0% and 17.2%, respectively, of the Company’s total purchases. For the year ended June 30, 2022, three
vendors accounted for 40.2%, 34.9% and 12.5%, respectively, of the Company’s total purchases. Recent accounting pronouncements In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07,
Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 are intended to improve reportable
segment disclosure primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years
beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments ASU 2023-07
should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company
is currently evaluating the disclosure impact that ASU 2023-07 may have on its condensed consolidated financial statement presentation
and disclosures. In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The amendments in ASU 2023-09
are intended to increase transparency through improvements to income tax disclosures primarily related to the rate reconciliation and
income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted.
The Company is currently evaluating the disclosure impact that ASU 2023-09 may have on its condensed consolidated financial statement
presentation and disclosures. The Company does not believe other recently issued but not yet effective
accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, consolidated
statements of income and consolidated statements of cash flows. |
