Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 433

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 433
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 services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation.

The Company’s revenue is derived from insurance brokerage services with respect to life insurance products. The Company, through its subsidiaries, carry on business of negotiating or arranging contracts of insurance products in or from Hong Kong as the agent of the policy holder or potential policy holder or advising on matters related to insurance, and is compensated in the form of commissions from the respective insurance companies, according to the terms of each service agreement made by and between the Company and the insurance companies.

The Company enters into insurance brokerage service contracts with insurance companies to specify key terms and conditions of each arrangement, which among other things, include a pre-agreed first year commission entitled by the Company in exchange for its sales facilitation service provided to the insurance companies. These commissions are normally calculated as a percentage (which varies depending on the insurance products involved) of the premium to the insurance companies from sales facilitated by the Company in respect of an insurance product. The insurance companies have the right to amend the prospective commission percentage from time to time at their entire discretion by giving written notice to the Company.

Billing of the commission is controlled by the insurance companies, therefore, the data necessary to reasonably determine the revenue amounts is made available to the Company by the insurance companies on a monthly basis or semi-monthly basis. Insurance brokerage services are considered to be rendered and completed, and revenue is recognized, at the time an insurance policy becomes effective and noncancelable; that is, according to the contracts with insurance companies, when the signed insurance policy is in place, the premium is collected from the policyholder and a cooling off period (normally 21 days) has elapsed. “Cooling off period” is defined as the period that the policyholders can unconditionally cancel their insurance contract and obtain refund after the contract has established. Generally, at the time when the insurance policy is signed, it is difficult for the Company to assess the policyholder’s ability and intention to pay the premium due on the policy or cancel the policy during the cooling off period. Therefore, it is not possible for the Company to estimate if it will collect substantially all of the commissions to which it will be