Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 34

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 4A
Chunk 34
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 that funds have
been or will be collected from the customer.

The service offerings by the Company mainly comprise
the following:

(a) Customized software solutions

The Company is engaged to provide a wide range
of customized IT software including desktop software development service, website and mobile application development services. The contract
is typically fixed priced with no variable consideration and does not provide any post contract client support or upgrades. The Company’s
contracts are generally non-cancellable and non-refundable in the event of cancellation. The Company designs software and system based
on clients’ specific needs which require the Company to perform services including design, development, and integration. These services
also require significant customization. A series of promises are identified in a contract. But these promises are interrelated and not
distinct. These promises are inputs used to complete the service. The customers cannot benefit from any standalone promise. Thus only
one performance obligation with standard quality guarantee is identified in a contract. The performance obligation is 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 by the customers. 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 customized software delivered.

Additionally, the Company provides product warranty
on customized IT software 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 customized IT 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 customized IT 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