Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 134

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 134
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 satisfied at a point of time and recognized as revenue upon the completion of services to the customers, usually at the time when the
result of services is tested and accepted the white label software by the customer. The duration of the development period is short, usually
less than one year. The contracts contain negotiated billing terms which generally include multiple payment phases throughout the contract
term and a portion of contract amount usually is billed upon the completion of the related projects. Contract liabilities will be recognized
when payment was received and charged to statements of operations once white label product delivered.

Additionally, the Company provides product warranty
on white label services for a period of 90 days from delivery of such software. The warranty is not a separate performance obligation
because the nature of the warranty is to provide assurance that the software will function as expected and comply with agreed-upon specifications.
The Company has not experienced material warranty costs and, therefore, does not believe an accrual for these costs is necessary. There
is no maintenance attached in the contract.

The Company provides technical support service
to the customer subsequent to the transfer of white label software for a period of time, typically 90 days from delivery of such
software. The Company provides the technical support services at no additional consideration, 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 cloud