Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 279

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 279
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Hardware sales

Revenue generated from hardware
sales when the Group provides sales of gates, blue-tooth door key and face recognition device which are usually used in conjunction with
the software system developed by the Group. The hardware can be provided with or without the installation services. The covenants identified
are the provision of hardware and the installation service. For this type of revenue, the installation service is relatively immaterial
compared to the hardware sales as it is usually free of charge and is only an accessory process to make the hardware operable. The single
performance obligation identified is the provision of hardware to the customers. The recognition of the revenue is when the customer has
confirmed the receipt of the hardware, which is the point in time that the control of the product is transferred to the customer and the
performance obligation is satisfied.

The Group presents the revenue
generated from its hardware sales on a gross basis as the Group is the principal party in satisfying the performance obligation. The Group
has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. In making this determination,
the Group also assesses whether it is primarily obligated in these transactions, is subject to inventory risk, has latitude in establishing
prices, or has met several but not all of these indicators.

Revenues are measured as the
amount of consideration the Group expects to receive in exchange for transferring products to customers. Consideration from product sales
is recorded net of value-added tax, and there is no variable consideration exists in the hardware sales. There is also no sales return
from the hardware sales after the customer has confirmed the receipt of hardware.

Others

Revenues generated from others
represent the usage based fees the Group charged for a percentage of payments that passed through the Group’s software system, which
is mainly used by property management company for collecting management fee. The single performance obligation identified is the provision
of service for customer to collect relative payment. Proceeds allocated to others are recognized as revenue when the payment is completed,
which is the point that the control of the service is transferred to the customer.

<div align='center'>F-37

3 E NETWORK TECHNOLOGY GROUP LIMITED
NOTES TO INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</div>

2. Summary of Significant Accounting Policies (cont.)

Contract balance

When a revenue contract has
been performed, the Group presents the contract in the consolidated balance sheet as a contract asset or a contract liability, depending
on the relationship between the