Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 277

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 277
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 liabilities.                        |

| Level 2 | — | Observable inputs other than Level 1 prices                                                                                                
 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable 
 or can be corroborated by observable market data for substantially the full term of the assets or liabilities.                             |

| Level 3 | — | Unobservable inputs that are supported                                                                   
 by little or no market activity and that are significant to the fair value of the assets or liabilities. |

Determining which category
an asset or liability falls within the hierarchy requires significant judgment. The Group evaluates its hierarchy disclosures each quarter.

m) Revenue recognition

In accordance with ASC Topic 606,
revenues are recognized when control of the contracted goods or services is transferred to the Group’s customers, in an amount that
reflects the consideration the Group expects to be entitled to in exchange for those goods or services. In determining when and how much
revenue is recognized from contracts with customers, the Group performs the following five-step analysis: (1) identify the contract(s) with
a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate
the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance
obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or
agent. Revenue is recognized upon the transfer of control of contracted goods or services to a customer.

Software development services

Revenues generated from software
development services is earned by the Group to design software system based on client’s specification or provide them with standard
software. The identified promises include (1) developing software according to client specification, (2) testing and deployment
of software, (3) delivering software (including but not limited to source code, etc.) to client, (4) providing training on the
use of software, and (5) option to purchase warranty. The single performance obligation identified is to develop software according
to client specification. Promises (1), (2) and (3) are interrelated and cannot be separated or differentiated, because testing
and deployment and delivery of software cannot be benefited on their own or with other readily available resources, except with the developed
software. Promises (4) and (5) identified above are immaterial when considered both qualitative and quantitative factors of
these performance obligations