Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 236

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 236
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 of the Securities Exchange Commission (“SEC”)

(b) Principles of consolidation

The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiary. All intercompany balances and transactions have been eliminated in consolidation.

(c) Use of estimates

The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements. These estimates and assumptions are evaluated regularly based on historical experience, current conditions, and reasonable and supportable forecasts of future economic conditions.

Significant accounting estimatesreflected in the Company’s unaudited condensed consolidated financial statements include, but are not limited to:

| ● | Incremental borrowing                                                                                                  
 rate used in the recognition of right-of-use assets and lease liabilities under ASC 842 (Leases), which is determined  
 based on the Company’s cost of borrowing, adjusted for the specific term and the economic environment.                 |
| ● | Allowance for expected                                                                                                 
 credit losses on accounts receivable under ASC 326 (Credit Losses), which is determined based on historical collection 
 experience, the creditworthiness of individual customers, and expected changes in macroeconomic conditions.            |
| ● | Useful lives of property                                                                                               
 and equipment, which are determined based on the Company’s experience with similar assets and expected usage patterns. |
| ● | Valuation allowance                                                                                                    
 for deferred tax assets under ASC 740 (Income Taxes), which is based on management’s assessment of the likelihood      
 of future taxable income and the ability to utilize deferred tax assets before expiration.                             |
| ● | Estimated progress towards                                                                                             
 the satisfaction of performance obligations under ASC 606 (Revenue from Contracts with Customers), which considers the 
 nature of the services provided and the terms of customer contracts.                                                   |

These estimates involve significant judgment and are subject to uncertainty, particularly in areas affected by market volatility, economic conditions, or customer-specific factors. Management regularly reviews and updates its estimates based on changes in these conditions and other relevant factors.

Given the inherent uncertainty in estimating future outcomes, actual results may differ from these estimates, and such differences could have a material impact on the Company’s financial position and results of operations. Management performs sensitivity analysis on critical accounting estimates to assess the potential impact of changes in assumptions and to ensure that the estimates remain reasonable under a range of possible outcomes.

(d) Functional currency and foreign