Company: GRAN
Filing Date: 2025-04-09
Form Type: F-1/A
Source: 0001213900-25-030179
Chunk: 288

Company: Grande Group Ltd/HK
Filing Date: 2025-04-09
Form: F-1/A
Chunk 288
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 auditors) has been completed, this work is not part of the role of the sponsor. The sponsor will still need to coordinate with other professional parties and perform its own due diligence on the information provided by these parties. The sponsorship services also do not meet criterion ASC 606 -10-25-27(b) because there is no asset controlled by the listing applicant during the period. The agreements entered into prior to April1, 2024 do not have a right to payment clause. The initial deposit normally only represents 24% in average of the total contract price and so it is not sufficient to cover the Company’s estimated costs incurred during the period before the achievement of the next milestone as specified in the service agreements. Consequently, the Company does not have an enforceable right to payment for its performance completed to date under these agreements and thus criterion ASC 606 -10-25-27(c) is not met. As a result, the services fee income is recognized at the point in time when the Company completes its sponsorship services. For an agreement entered into since April1, 2024, it has a right to payment clause, meaning the Company has a contractual right to receive payment pro -ratato its performance completed to date. Also, the Company’s performance does not create an asset with an alternative use to the Company. Consequently, the Company has an enforceable right to payment for its performance completed to date under the agreement and thus criterion ASC 606 -10-25-27(c) is met. As a result, the services fee income is recognized over time and the Company uses an input method based on project labor hours incurred to date compared to total estimated project labor hours to measure its progress toward complete satisfaction of the performance obligation. The input method is the most representative depiction of the Company’s performance because it directly measures the value of the services transferred to the customer. The Company considers the milestone payments as variable consideration because the amount it expects to receive can vary depending on the achievement of the future milestones. The Company uses the most likely amount method to estimate the variable consideration in its contract applying ASC 606 -10-32-8because it is the method that the Company expects to better predict the amount of consideration to which it will be entitled. However, given that the milestone payments are significant and the successful submission of the listing application is largely not within the control of the Company and subject to significant uncertainty, the Company determines that the probable criterion in ASC 606 -10-32-11is not met for the milestone payment. Nevertheless