Company: MASK
Filing Date: 2025-12-02
Form Type: POS AM
Source: 0001185185-25-001899
Chunk: 255

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-02
Form: POS AM
Chunk 255
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ation from product
sales is recorded net of value-added tax, and there is no variable consideration exists in the hardware sales. There is also no sales
return from the hardware sales after the customer has confirmed the receipt of hardware.

This type of income was only
generated by Guangzhou Sanyi Network. As the Group sold 60% equity of Guangzhou Sanyi Network, this type of income was reclassified to
income from discontinued operations.

Others

Revenues generated from others
represent the usage based fees the Group charged for a percentage of payments that passed through the Group’s software system, which
is mainly used by property management company for collecting management fee. The single performance obligation identified is the provision
of service for customer to collect relative payment. Proceeds allocated to others are recognized as revenue when the payment is completed,
which is the point that the control of the service is transferred to the customer.

This type of income was only
generated by Guangzhou Sanyi Network. As the Group sold 60% equity of Guangzhou Sanyi Network, this type of income was reclassified to
income from discontinued operations.

<div align='center'>F-12

3 E NETWORK TECHNOLOGY GROUP LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

2. Summary of Significant Accounting Policies(cont.)

Contract balance

When a revenue
contract has been performed, the Group presents the contract in the consolidated balance sheet as a contract asset or a contract liability,
depending on the relationship between the Group’s performance and the customer’s payment. Contract balances consist of accounts
receivable, contract assets and contract liabilities.

Accounts receivable represent
revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has
unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services
that the entity has transferred to a customer when that right is conditioned on something other than the passage of time. As of June 30,
2025 and 2024, the Group does not have any contract assets.

Contract liabilities consist
of advance from customers, which represent the billings or cash received for services or product sales in advance of revenue recognition
and is recognized as revenue when all of the Group’s revenue recognition criteria are met. For the years ended June 30, 2024 and
2023, all contract liability at the beginning of the reporting period has been recognized as revenue during the years. The Group’s