Company: RHNO
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001493152-25-022052
Chunk: 836

Company: RHINO BITCOIN INC.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 10
Chunk 836
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ateness of the valuation methodologies used; 

    (c)
    Compared
    the Company’s assessment to our expectation based on our knowledge;

    (d)
    Considered
    the adequacy of the disclosure in the financial statements in relation to the investments.

The
investment is being impaired as to Phoenix Plus Corp. (now known as Rhino Bitcoin Inc.) through its solicitors, already file a
winding up petition to the Court of Malaysia against its investment.

Revenue
recognition

The
Company has determined that certain performance obligations in relation to project activities are satisfied over time and thus recognizes
revenue from this activity over time.

A
significant proportion of the Company’s revenues and profits are derived from project activities. For the financial year ended
July 31, 2025, project revenue and cost of sales are as follows:

    Project
    activities

    Revenue:
     
    USD478,159
     
    (100%
    of the Company’s revenue)

    Cost
    of sales:
     
    USD411,231
     
    (99.99%
    of the Company’s cost of sales)

We
identified revenue and cost of sales from project activities as an area requiring audit focus as significant management’s judgement
and estimates are involved in estimating the total project costs (which is used to determine gross profit margin of project activities
undertaken by the Company). The amount of revenue and profit recognized from project activities are dependent on, amongst others, the
extent of costs incurred to the total estimated costs of construction to derive the percentage-of-completion and the estimated total
revenue for each of the respective projects.

In
addressing this area of focus, we performed, amongst others, the following procedures:

    (a)
    Obtained
    an understanding of the processes and internal controls over the accuracy and timing of revenue recognized in the financial statements,
    including controls performed by management in estimating the total project costs, profit margin and progress of projects;
  
    (b)
    For
    individually significant projects, we read the contracts entered into with customers to obtain an understanding of the specific terms
    and conditions;
  
    (c)
    Evaluated
    the assumptions applied in estimating the total project costs for each project phase by examining documentary evidence such as letters
    of award issued to contractors to support the budgeted gross project cost. We also considered the historical accuracy of management’s
    forecasts for the similar projects within the Company in evaluating the estimated total project