Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 86

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 86
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 we recognize revenue rateably over the service period. Revenue for maintenance and support is deferred and recognized over time as we satisfy our obligation to provide updates and technical support.

IT Professional Services

IT
professional services related to IT system setup, development, customization or integration services. These services represent stand-alone
performance obligations, and revenue is recognized upon the completion of the services, when the customer gains the ability to use the
system and benefit from the services provided by us.

Revenue from IT professional services is recognized at a point in time upon the completion of services. This determination is based on the following considerations under ASC 606-10-25-27:

| (i)   | Simultaneous                                                                                                                           
 Receipt and Consumption: The customer does not simultaneously receive and consume the benefits of the IT professional services         
 as they are performed. The services are delivered as a complete solution, and the customer derives value only upon full completion.    |
| (ii)  | Creation                                                                                                                               
 or Enhancement of Customer-Controlled Asset: The services provided do not create or enhance an asset that the customer                 
 controls as the services are performed. The customer does not gain control until the services are completed.                           |
| (iii) | No                                                                                                                                     
 Alternative Use and Enforceable Right to Payment: While the deliverables                                                               
 are tailored to customer-specific requirements, they do not meet the “no alternative                                                   
 use” criterion because, in practice, the Company can reconfigure partially completed                                                   
 deliverables for other projects, albeit with additional effort.                                                                        
 More importantly, the Company does not have an enforceable right                                                                       
 to payment for performance completed to date. Engagement letters typically permit termination at any time without penalty, and payment 
 terms do not obligate the customer to pay for partially completed work.                                                                |

Accordingly, control is transferred to the customer at a point in time, and revenue is recognized at that time.

Contracts with Multiple Promises

The Company frequently enters into contracts with customers that contain multiple promises, including hardware, software, IT application licenses, and IT professional services. To determine whether these promises are distinct within the context of the contract, the Company applies the guidance in ASC 606-10-25-19 through 25-22, which requires an assessment of whether:

| 1. | The                                                                                       
 customer can benefit from the good or service on its own or with other readily available  
 resources; and                                                                            |
| 2. | The                                                                                       
 promise to transfer the good or service is separately identifiable from