Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 33

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 33
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 losses, the useful lives of property and equipment and
intangible assets, and interest rate of lease, impairment assessment of property and equipment and intangible assets. Actual results may
differ from these estimates.

We believe the following critical accounting policies
reflect the more significant judgments and estimates we used in the preparations of our consolidated financial statements.

Revenue recognition

The Company recognizes revenue in accordance with
ASC Topic 606, Revenue from Contracts with Customers, and subsequently issued additional related Accounting Standards Updates (collectively,
“ ASC 606”). The Company derives revenue principally from the provision of customized software solutions based on customers’
specifications, white labelled software design and development services and MR. CLOUD SaaS platform subscription services to SMBs
customers. The Company enters into agreements with customers that create enforceable rights and obligations and for which it is probable
that the Company will collect the consideration to which it will be entitled as services transfer to the customer. It is customary practice
for the Company to have written agreements with its customers and revenue on oral or implied arrangements is generally not recognized.
The Company recognizes revenue based on the consideration specified in the applicable agreement.

Revenue from contracts with customers is recognized
using the following five steps:

  identify the contract(s) with a customer;  

  identify the performance obligations in the contract;  

  determine the transaction price;  

  allocate the transaction price to the performance obligations  

  recognize revenue when (or as) the entity satisfies a performance  

The Company has elected to apply the practical
expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original
expected durations of one year or less.

The Company elected a practical expedient that
it does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects that,
upon the inception of revenue contracts, the period between when the Company transfers its promised services or deliverables to its clients
and when the clients pay for those services or deliverables will be one year or less.

As a practical expedient, the Company elected
to expense the incremental costs of obtaining a contract when incurred if the amortization period of the asset that the Company otherwise
would have recognized is one year or less.

Generally, revenue is recognized when the Company
has negotiated the terms of the transaction, which includes determining either the overall price, the service or product has been delivered
to the customer, no obligation is outstanding regarding that service or product, and the Company is reasonably assured