Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 278

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 278
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. In the same contract, the Company provides a twelve-month free warranty after the customized application
is delivered. This warranty is an assurance-type warranty so the Company does not consider it as a separate performance obligation. The
costs to the Company in fulfilling its obligation under the warranty clause have been immaterial. The sole performance obligation identified
is the developing, testing and deployment, and delivery of software. The Group is the principal party in fulfilling the identified performance
obligation. The revenue is recognized at a point in time when it delivers the software to the client for acceptance testing and the acceptance
report is signed, which represents the point in time which the performance obligation is satisfied and when the control of the software
is transferred to the client.

<div align='center'>F-36

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

2. Summary of Significant Accounting Policies (cont.)

Revenues are measured as the
amount of consideration the Group expects to receive in exchange for transferring software to customers. Consideration is recorded net
of value-added tax, and there is no variable consideration exists in the software development services.

Exhibition and conference services

Revenues generated from exhibition
and conference services is earned by the Group to provide IT services to exhibition or conference organizers. The service includes gates,
ticketing machine, ticket reader, face recognition equipment, health code reader and personnel required to operate the equipment. The
service contract is usually for a fixed period covering the set-up time and the exhibition or conference period. For this type of service,
the series of tasks discussed above are interrelated and cannot be separated or differentiated, because the goal of the clients is to
have a usable system for the exhibition and conference. They cannot benefit from individual task. The single performance obligation identified
is the complete service is provided to the client during the contract period. The Group is the principal party in fulfilling the identified
performance obligation. The control of the service is transferred to the client at a point in time when the complete service is provided
to the client, as the client can only be benefited when the complete service is provided. Thus the revenue is recognized at a point in
time when the provision of service is completed.

Revenues are measured as the
amount of consideration the Group expects to receive in exchange for providing the service to customers. Consideration is recorded net
of value-added tax, and there is no variable consideration exists in the exhibition and conference services