Company: CHOW
Filing Date: 2025-01-13
Form Type: DRS/A
Source: 0001493152-25-001833
Chunk: 242

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-01-13
Form: DRS/A
Chunk 242
---
 Sale of Software and IT Application products with IT Professional Services         |     |                               | 33,169,517 |     |   | 37.3 |     |            | 47,822,064 |     |             |  6,131,034 |     |   | 48.7 |
| IT                                                                                 
 Professional Services                                                              |     |                               |  3,412,821 |     |   |  3.8 |     |            |  3,233,871 |     |             |    414,599 |     |   |  3.3 |
| Maintenance                                                                        
 and Support Services                                                               |     |                               |  1,488,923 |     |   |  1.7 |     |            |  2,489,537 |     |             |    319,172 |     |   |  2.5 |
|                                                                                    |     |                               | 80,397,473 |     |   | 90.4 |     |            | 90,490,307 |     |             | 11,601,322 |     |   | 92.1 |
| Total                                                                              
 revenues                                                                           |     |                               | 89,013,224 |     |   |  100 |     |            | 98,293,397 |     |             | 12,601,718 |     |   |  100 |

* Revenue Recognition for Contracts with Non-Distinct Obligations

Contracts with customers often include a combination of goods (e.g., hardware, software) and services (e.g., IT professional services, integration, maintenance). When the goods and services in a contract are highly interdependent and interrelated, they are treated as a single performance obligation in accordance with ASC 606-10-25-21.

The total transaction price for such contracts
is recognized as revenue at the point in time when control of the combined performance obligation transfers to the customer, typically
upon customer acceptance. Given the integrated nature of the deliverables, the Company cannot allocate revenue to individual components
such as hardware, software, or services.

Instead, revenue is categorized based on the
predominant characteristic of the combined deliverable. This determination considers the primary benefit to the customer, the relative
significance of each component to the contract’s objective, and the customer’s primary reason for entering the arrangement. For example,
when contracts involve a significant degree of customization and implementation services