Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 89

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 89
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The Company has determined that none of the promises are distinct from each other, as they are highly interdependent and interrelated because:

| ● | Hardware                                                                                           
 requires software to operate, and software requires IT services for customization and integration. |
| ● | IT                                                                                                 
 professional services configure and connect the hardware and software to function as a unified     
 system.                                                                                            |
| ● | Per                                                                                                
 BC32, the contract’s objective is to deliver an integrated IT system, rather than discrete         
 components.                                                                                        |

Why IT Professional Services Are an Input to the Combined Output

The Company considered the following factors in concluding that IT professional services are an input to a combined output:

| ● | Level                                                                                     
 of Integration: IT professional services configure both hardware and software to function 
 as a single IT system.                                                                    |
| ● | Modification                                                                              
 & Customization: IT professional services modify the components to meet customer-specific 
 requirements.                                                                             |
| ● | Customer                                                                                  
 Dependency: The customer does not receive a functional IT system unless all components    
 are integrated.                                                                           |

Revenue Recognition Conclusion

Since the hardware, software, and IT professional services are highly interdependent and form a single performance obligation, revenue is recognized at a point in time when control of the fully integrated IT system is transferred to the customer upon completion and acceptance.

(iv) Sale of Software and IT Application Products with Maintenance and Support Services

Nature of Promises & Intended Benefit to the Customer

In certain contracts, the Company sells software and IT application licenses that grant customers the right to use proprietary software. These software products and licenses provide immediate functionality and enable the customer to operate the software in their IT environment.

Additionally, these contracts may include maintenance and support (M&S) services, which typically consist of:

| ● | Technical                                                                                     
 support to assist the customer with troubleshooting and operational issues.                   |
| ● | Unspecified                                                                                   
 software updates and patches to enhance security, performance, or compatibility with evolving 
 IT environments.                                                                              |
| ● | Access                                                                                        
 to periodic feature upgrades, if applicable.                                                  |

The primary intended benefit to the customer is the use of the software license. The maintenance and support services supplement the software usage by ensuring that it continues to operate effectively but do not modify or enhance the software’s core functionality at the time of transfer.

| 55 |

Assessment of Interdependency and Significant Effect on Utility

To determine whether the software license and M&S services are distinct within the context of the contract, the Company evaluates whether:

| ● | The