Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 28

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 is satisfied. Generally, the Company’s performance obligations are transferred to customers at
a point in time, typically upon delivery or service being rendered.

Contract liabilities consist of advance from customers
related to cash received from customers for the future transfer of goods to customers. The balance of advance from customers represents
unfulfilled performance obligations in the sales agreement, i.e. products that have not yet been delivered. Once the related products
have been delivered, the amount in the advance from customers account is shifted to a revenue account. As of September 30, 2025 and December
31, 2024, the balance of advance from customers was $2,809 and $51,237, respectively. For the nine months ended September 30, 2025 and
2024, $51,237 and $142,889 of revenue recognized was included in the Company’s advance from customers’ balance as of December
31, 2024 and 2023, respectively.

For all reporting periods, the Company has not disclosed
the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less,
which is an optional exemption that is permitted under the adopted rules. 

For all reporting periods, the Company has not disclosed
the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less,
which is an optional exemption that is permitted under the adopted rules.

Recent accounting pronouncements

In November 2023, the Financial Accounting Standards
Board (“FASB”) issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable
segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the
Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This
ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses
the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The
ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December
15, 2023. The Company adopted ASU 2023-07 as of January 1, 2024. The adoption of this guidance did not have a material impact on the Company’s
condensed consolidated financial