Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 133

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 133
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 recognized when payment was received and charged
to statements of operations once customized software delivered.

Additionally, the Company provides product warranty
on customized IT software for a period of 90 days from delivery of such software. The warranty is not a separate performance obligation
because the nature of the warranty is to provide assurance that the software will function as expected and comply with agreed-upon specifications.
The Company has not experienced material warranty costs and, therefore, does not believe an accrual for these costs is necessary. There
is no maintenance attached in the contract.

F-15

WELLCHANGE HOLDINGS COMPANY LIMITED

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
AND PRACTICES(cont.)

The
Company provides technical support service to the customer subsequent to the transfer of customized IT software for a period of time,
typically 90 days from delivery of such software. The Company provides the technical support services at no additional consideration,
the transaction price of the contract is allocated to customized IT software and technical support service by reference to their standalone
price estimated using a residual approach. The standalone price of technical support services is considered to be minimal as the Company
has not had to provide significant technical support services to date for our platform, no transaction price is allocated to technical
support services for the years ended December 31, 2022, 2023 and 2024.

(b) White
label software

The Company provides self-developed software as
“white label” products to corporate customers. White label software is software that is sold unbranded, that their own branding
can be added and then the software can be resold by accessing to the software as if the corporate customers developed it. Similar to customized
software solutions, the Company is engaged by the customer to provide white-label software and the customer is able to customize the white
label software/application and integrate custom features into the default white label applications and software per their needs. Revenue
from white label software is recognized when the relevant services have been rendered. The contract is typically fixed priced with no
variable consideration and does not provide any post contract client support or upgrades. The Company’s contracts are generally
non-cancellable and non-refundable in the event of cancellation. A series of promises are identified in a contract. But these promises
are interrelated and not distinct. These promises are inputs used to complete the service. The customers cannot benefit from any standalone
promise. Thus only one performance obligation with standard quality guarantee is identified in a contract. The performance obligation
is