Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 36

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 36
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, the transaction price of the contract is
allocated to white label software and technical support service by reference to their standalone price estimated using a residual approach.
The standalone price of technical support services is considered to be minimal as the Company has not had to provide significant technical
support services to date for our platform, no transaction price is allocated to technical support services for the years ended December 31,
2022, 2023 and 2024.

(c) Subscription services

The Company provides SaaS digital business management
software services through subscription which includes the right to use the MR. CLOUD ERP software and continuous technical support
services such as upgrading applications and fixing the minor bugs to SMBs. MR. CLOUD is a cloud-based software delivery model to
develop, deliver, and maintain a variety of ERP software and applications modules in a single platform, including human resources management,
project and file management, email and marketing automation, financial and accounting, quotation and invoice management, inventory management,
group messenger and customer relationship management, merging all of customers’ business processes on a single platform instead
of having a different software and applications for each function of its business. Customer who subscribes to the service plan logs in
to their accounts to use the subscribed service over the internet or mobile on a clouded basis.

The Company enters into a distinct and
fixed-fee contract with its customers as a principal for the provision of SaaS digital business management software services on
subscription basis. Pursuant to the contracts, the Company requires to provide a series of digital business management applications
online either being accessed on web or mobile over contract terms beginning on the commencement date of each contract, which is the
date its service is made available to customers. Billings to the customers are generally on a monthly or quarterly basis over the
contract term, which is typically one year. There is no variable consideration in the transaction price. The Company’s
contracts are generally non-cancellable and non-refundable in the event of cancellation. The subscription services contracts
typically include a single performance obligation. There will be an update or upgrade of the MR. CLOUD ERP system when
necessary and which can be utilized by existing customers automatically for the new functions during their contract period. There is
no additional consideration for the update or upgrade of the software and the additional costs for the updates and upgrades were
charged to statements of operations directly in the period incurred. The transaction price of the contract is allocated to the
remaining contract period from the date of the upgraded software available for customers