Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 246

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 246
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 software – The            
 customer can use the software independently, and the M&S services merely support long-term 
 usability.                                                                                 |
| ● | Do                                                                                         
 not significantly integrate with or change the underlying software – The services          
 are supplementary rather than essential for the initial use of the product.                |

As such, M&S services do not qualify as an input to a combined output under BC33(a) or (b) and are therefore evaluated separately from the software license.

Revenue Recognition Conclusion

Since the Company has determined that M&S services are immaterial to the total transaction price, the software license and M&S services are treated as a single performance obligation for simplicity in revenue recognition.

| ● | Revenue                                                                                     
 for the combined performance obligation is recognized at a point in time when control of    
 the software license is transferred to the customer, typically upon delivery or activation. |
| ● | Any                                                                                         
 revenue associated with M&S services is included in the total transaction price of the      
 software license and recognized at the same point in time, as the distinction between the   
 two does not materially impact revenue timing.                                              |

| F-52 |

Variable Consideration

The Company estimates variable consideration, including potential refunds, penalties, or performance bonuses, using the expected value or most likely amount method, depending on which better predicts the amount of consideration to which the Company will be entitled. The Company recognizes revenue only to the extent that it is probable that a significant reversal of cumulative revenue will not occur. For the six months ended June 30, 2023 and 2024, the Company did not have any contracts with variable consideration, and no adjustments to the transaction price were necessary after initial recognition.

Principal versus Agent Considerations

In evaluating whether the Company is acting as a principal or an agent in its contracts, we considered the guidance in ASC 606-10-55-36 through 55-40. This evaluation focused on identifying the specified goods or services promised to the customer and assessing whether the Company obtains control of these goods or services before they are transferred to the customer.

The Company’s IT solutions involve services, hardware, software, and IT application products. In these contracts, the Company provides a bundle of goods and services necessary to fulfil the performance obligations. While certain components of the solution, such as hardware and software, may be sourced from third-party providers, the Company directs and integrates these inputs into a cohesive IT solution that meets the customer’s needs.

Specifically:

1. Control of Goods and Services:

The Company takes control of the services,