Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 68

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 5
Chunk 68
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 June 30, 2024      —           
  Addition                                                                1,680,000   
  Change of fair value recognized in other income (expense)               —           
  Balance as of June 30, 2025                                             1,680,000   
  Balance as of June 30, 2025 (US$)                                       215,385     

Expected
credit loss and accounts receivable

Accounting
Standards Update (ASU) 2016-13, “ Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments”
(Topic 326) requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial
assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires
waiting to recognize a loss until it is probable of having been incurred.

Accounts
receivable is stated at its original invoiced amount. To determine the extent of related collection risk on the accounts receivable,
the Company adopted the expected credit losses (“ CECL”) model, which is based on management’s historical collection
experience, age of the receivable, the economic environment, industry trend analysis, and the current credit profile and financial condition
of the customers. The Company classifies its customers into categories with similar risk characteristics. Each risk category is assigned
a base loss rate, which is adjusted upwards using an aging matrix. Management reviews its receivables on a regular basis to determine
if the allowance for expected credit losses is adequate and adjusts the allowance, including the base loss rate and adjustment factors,
when necessary. Delinquent account balances are written-off against the allowance for expected credit losses after all means of collection
have been exhausted and that the likelihood of collection is not probable.

  38  

Property
and equipment, net

Property
and equipment primarily consists of leasehold improvement and office equipment and other, which is stated at cost less accumulated depreciation
less any impairment losses. The cost of property and equipment comprises its purchase price and any directly attributable costs of bringing
the asset to its working condition and location for its intended use. Depreciation is computed using the straight-line method based on
the estimated useful life.

  Fixed                    Useful                                      
  Asset Category           lives                                       
 ───────────────────────────────────────────────────────────────────────
  Office                   5                                           
  Leasehold                Shorter                                     

Costs
of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The