Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 128

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 128
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of goods Distributors

The
Company also sells the above products wholesale to third party distributors. Sales are recognized when control of the products have transferred
to these distributors, being when the products are delivered and accepted. The third party distributors have limited discretion over
sales channels and price to sell the products, and there are no unfulfilled obligations that could affect the distributors’ acceptance
of the products. No element of financing is deemed present as the sales are made with a credit term of 30 days, which is consistent with
market practice.

Software
services rendered

Revenue
from software services rendered is recognized in the accounting period in which the services are rendered, as a performance obligation
satisfied over time. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting
period as a proportion of the total services to be provided. Payments for services rendered are not due from the customer until the services
are complete and therefore a contract asset is recognized over the period in which the services are performed, representing the Company’s
right to consideration for the services performed to date.

Revenue
from software services rendered also include revenues from sales of hardware. For these contracts, we account for the hardware separately
from the software service rendered as they are distinct performance obligations. Refer to the discussion below related to contracts with
multiple performance obligations for further details. The transaction price is allocated to separate performance obligations on a relative
SSP basis. The transaction price allocated to the hardware is recognized when transfer of control of the hardware to the customer is
complete. The transaction price allocated to the software service is recognized ratably over contract term.

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Contracts
with multiple performance obligations

We
enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and
accounted for as separate performance obligations. We evaluate the terms and conditions included within our customer contracts to ensure
appropriate revenue recognition, including whether products and services are considered distinct performance obligations that should
be accounted for separately versus together. For contracts with multiple performance obligations, the transactions price is allocated
to the sperate performance obligations on a relative SSP basis. We determine SSP by considering the historical selling price of these
performance obligations in similar transactions as well as other factors, including, but not limited to, competitive pricing of similar