Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 277

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 277
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The estimated useful lives of the assets are reviewed
periodically to determine whether adjustments are necessary. Depreciation commences once the asset is placed in service and continues
until the asset is either fully depreciated or retired.

Impairment considerations: The Company evaluates
its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of the assets
may not be fully recoverable. The impairment test compares the carrying value of the asset to its estimated future undiscounted cash
flows. If the carrying value exceeds the cash flows, an impairment loss is recognized based on the difference between the carrying value
and the fair value of the asset. For the six months ended June 30, 2023, and 2024, no impairment indicators were identified, and no impairment
losses were recognized.

Decrease in property and equipment in 2024: The decrease
in property and equipment during 2024 is attributable to the depreciation expenses recognized during the period.

10. INTANGIBLE ASSET, NET

The Company’s intangible asset consists of
an information technology service management system, a computer software platform that is not an integral part of a computer-controlled
machine. The intangible asset is capitalized at cost, which includes development costs paid to the system developer and other directly
attributable costs of preparing the asset for its intended use.

Capitalization Criteria: Development costs are
capitalized when they meet the criteria for recognition as an intangible asset under ASC 350. Specifically, only costs incurred during
the application development stage are capitalized. Costs incurred to enhance or extend the performance of the asset beyond its original
specifications are also capitalized if they meet the recognition criteria. Maintenance costs or costs incurred during the preliminary
project stage are expensed as incurred.

Following initial recognition, the intangible asset
is carried at cost less accumulated amortization and any accumulated impairment losses. The asset is amortized on a straight-line basis
over its estimated useful life of 5 years, reflecting the period over which the Company expects to derive economic benefits from the
asset.

| F-68 |

As of December 31, 2023 and June 30, 2024, the balances
of the intangible asset are as follows:

|                                                  |     |     |                   As 
 of December 31, 2023 |   |     |            | As of June 30, 2024 |   |     |                 |         |   |
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