Company: CHOW
Filing Date: 2025-05-29
Form Type: F-1/A
Source: 0001641172-25-012773
Chunk: 85

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-05-29
Form: F-1/A
Chunk 85
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 upon the completion of services. This determination is based on the following considerations under ASC 606-10-25-27:

| (i)   | Simultaneous                                                                                                                        
 Receipt and Consumption: The customer does not simultaneously receive and consume the benefits of the IT professional services      
 as they are performed. The services are delivered as a complete solution, and the customer derives value only upon full completion. |
| (ii)  | Creation                                                                                                                            
 or Enhancement of Customer-Controlled Asset: The services provided do not create or enhance an asset that the customer              
 controls as the services are performed. The customer does not gain control until the services are completed.                        |
| (iii) | No                                                                                                                                  
 Alternative Use and Enforceable Right to Payment: While                                                                             
 the deliverables are tailored to customer-specific requirements, they do not meet the “no                                           
 alternative use” criterion because, in practice, the Company can reconfigure partially                                              
 completed deliverables for other projects, albeit with additional effort.                                                           
 More importantly,                                                                                                                   
 the Company does not have an enforceable right to payment for performance completed to date. Engagement letters typically permit    
 termination at any time without penalty, and payment terms do not obligate the customer to pay for partially completed work.        |

Accordingly, control is transferred to the customer at a point in time, and revenue is recognized at that time.

Contracts with Multiple Promises

The Company frequently enters into contracts with customers that contain multiple promises, including hardware, software, IT application licenses, and IT professional services. To determine whether these promises are distinct within the context of the contract, the Company applies the guidance in ASC 606-10-25-19 through 25-22, which requires an assessment of whether:

| 1. | The                                                                                       
 customer can benefit from the good or service on its own or with other readily available  
 resources; and                                                                            |
| 2. | The                                                                                       
 promise to transfer the good or service is separately identifiable from other promises in 
 the contract.                                                                             |

A promised good or service is not distinct if it is highly interdependent and interrelated with other promises, meaning its function is significantly affected by the other promises in the contract. BC32 of ASC 606 states:

“An entity should assess whether two or more promises in a contract are so highly interrelated and interdependent that they cannot be separated.”

Additionally, BC33(a) and (b) explain that if an entity provides a significant service of integrating multiple items into a combined output