Company: QSJC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001683168-25-008383
Chunk: 27

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 financing activities was $298,904
for the nine months ended September 30, 2025, which was attributable to the funds from related parties to support our business operations.

Inflation

Inflation and changing prices have not had a material
effect on our business, and we do not expect that inflation or changing prices will materially affect our business in the foreseeable
future. However, our management will closely monitor price changes in our industry and continually maintain effective cost control in
operations.

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenue
or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.

Critical Accounting Policies and Estimates

Revenue Recognition

The Company’s revenue recognition policy is
compliant with ASC 606, Revenue from Contracts with Customers that revenue is recognized when a customer obtains control of promised goods
and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. 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. The Company applies the following five-step model in order to determine this amount:

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

    (ii)
    determination of whether the 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.

 22 

The Company only applies the five-step model to contracts
when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers
to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract
to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company
recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when the performance
obligation is satisfied or as it