Company: HNIT
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001493152-25-003324
Chunk: 152

Company: Huineng Technology Corp
Filing Date: 2025-01-23
Form: 10-K
Item: Item 5
Chunk 152
---
 conditions and trends, and the business relationship
and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates,
which could impact the level of the Company’s future allowance for credit losses. If judgments regarding the collectability of
receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability.

Accounts
receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for
doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as identified.

Plant
and equipment

Plant
and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of plant, equipment and software are calculated
on the straight-line method over their estimated useful lives or lease terms generally as follows:

SCHEDULE
OF ESTIMATED USEFUL LIVES 

    Classification
     
    Useful
    Life
  
    Office
    Equipment
     
    5
    years

    F-7

Revenue
Recognition

Revenue
is generated through provision of website development and design services to customers. Revenue is recognized when a customer obtains
control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive
in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty
of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that
the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to
determine this amount:

(i)
identification of the promised goods and services in the contract;

(ii)
determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context
of the contract;

(iii)
measurement of the transaction price, including the constraint on variable consideration;

(iv)
allocation of the transaction price to the performance obligations; and

(v)
recognition of revenue when (or as) the Company satisfies each performance obligation.

The
Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under Topic 606, the Company records revenue when persuasive
evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. The Company
records revenue from the wholesale of goods upon the