Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 141

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 141
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We sell hardware such as gates, facial recognition
gate control units and card readers to our customers. The hardware is generally used by our customers along with the software developed
by us. The hardware can be provided with or without installation services, although we provide both hardware deliveries and installation
services. For this type of revenue, the installation service is relatively immaterial compared to the hardware sales as it is usually
free of charge and is only an add-on process to make the hardware operable. The single performance obligation identified is the provision
of hardware to the customers. Revenue is recognized when the customer has confirmed the receipt of the hardware, which is the point in
time that the ownership control of the product is transferred to the customer and the performance obligation is satisfied.

Accounts receivable and allowance for
credit losses

Accounts receivable are carried at net realizable
value. An allowance for credit losses is recorded in the period when loss is probable. We determine the adequacy of a reserve for credit
losses based on individual account analysis and historical collection trends. We establish a provision for credit losses when there is
objective evidence that we may not be able to collect amounts due. The allowance is based on management’s best estimates of specific
losses on individual customer exposures, as well as the historical trends of collections. Delinquent account balances are written-off
against the allowance for credit losses after management has determined that the likelihood of collection is not probable. We regularly
review the adequacy and appropriateness of the allowance for credit losses.

Income taxes

We account for current income taxes in accordance
with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases
of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the
period including the enactment date. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized,
when it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized.

Recent Accounting Pronouncements

The Jumpstart Our Business Startups Act (“JOBS
Act”) provides that an emerging growth company (“EGC”) as defined therein can take advantage of an extended transition
period for