Company: CHOW
Filing Date: 2025-01-13
Form Type: DRS/A
Source: 0001493152-25-001833
Chunk: 218

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-01-13
Form: DRS/A
Chunk 218
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 which the Company expects to derive economic benefits from the asset.

As of December 31, 2022 and 2023, the balances of the intangible asset are as follows:

|                                                  |     | As of December 31, |           |     |      |           |   |     |                 |         |   |
|                                                  |     |               2022 |           |     | 2023 |           |   |     |                 |         |   |
|                                                  |     |                HK$ |           |     |  HK$ |           |   |     | US$ (Note 2(e)) |         |   |
| Information technology service management system |     |                    | 1,268,330 |     |      | 2,206,846 |   |     |                 | 282,929 |   |
|                                                  |     |                    | 1,268,330 |     |      | 2,206,846 |   |     |                 | 282,929 |   |
| Less: Accumulated amortization                   |     |                    |         - |     |      |  (378,801 | ) |     |                 | (48,564 | ) |
| Intangible asset, net                            |     |                    | 1,268,330 |     |      | 1,828,045 |   |     |                 | 234,365 |   |

The increase in the intangible asset during 2023 represents additional development costs incurred to enhance and expand the system’s functionality, reflecting the Company’s ongoing investment in its proprietary software platform.

Amortization: Amortization of the intangible asset began in 2023 when the asset was ready for its intended use. The timing of amortization reflects the asset’s readiness for economic use, regardless of its actual deployment or operational use. Amortization expenses for the years ended December 31, 2022, and 2023, were HK$0 and HK$378,801 (US$48,564), respectively. Amortization is calculated on a straight-line basis over the asset’s useful life of 5 years.

| F-32 |

Impairment Considerations: The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The impairment test compares the carrying amount to the undiscounted future cash flows expected to result from the use of the asset. If the carrying amount exceeds the