Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 227

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 227
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           |   |     |                 |         |   |
|                                                  |     |               2022 |           |     | 2023 |           |   |     |                 |         |   |
|                                                  |     |                HK$ |           |     |  HK$ |           |   |     | US$ (Note 2(e)) |         |   |
| Information technology service management system |     |                    | 1,268,330 |     |      | 2,206,846 |   |     |                 | 282,929 |   |
|                                                  |     |                    | 1,268,330 |     |      | 2,206,846 |   |     |                 | 282,929 |   |
| Less: Accumulated amortization                   |     |                    |         - |     |      |  (378,801 | ) |     |                 | (48,564 | ) |
| Intangible asset, net                            |     |                    | 1,268,330 |     |      | 1,828,045 |   |     |                 | 234,365 |   |

The increase in the intangible asset during 2023 represents additional development costs incurred to enhance and expand the system’s functionality, reflecting the Company’s ongoing investment in its proprietary software platform.

Amortization: Amortization of the intangible asset began in 2023 when the asset was ready for its intended use. The timing of amortization reflects the asset’s readiness for economic use, regardless of its actual deployment or operational use. Amortization expenses for the years ended December 31, 2022, and 2023, were HK$0 and HK$378,801 (US$48,564), respectively. Amortization is calculated on a straight-line basis over the asset’s useful life of 5 years.

| F-33 |

Impairment Considerations: The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The impairment test compares the carrying amount to the undiscounted future cash flows expected to result from the use of the asset. If the carrying amount exceeds the undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and the fair value of the asset. For the years ended December 31, 2022, and 2023, no impairment indicators were identified, and no impairment losses were recognized