Company: IDVV
Filing Date: 2025-05-30
Form Type: 10-12G
Source: 0001683168-25-004098
Chunk: 155

Company: ModuLink Inc.
Filing Date: 2025-05-30
Form: 10-12G
Chunk 155
---
 assessment of the current status of individual accounts,
type of service performed, current economic conditions, historical losses and other information available to management. Balances that
are still outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful
accounts and an adjustment to the contract receivable.

| F-22 |

<div align='center'>MODULINK INVESTMENT LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023</div>

| NOTE 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |

(I) Contract Assets and Contract Liabilities

Billing practices for the Company’s contracts
are governed by the contract terms of each project based on (i) progress toward completion approved by the owner, (ii) achievement of
milestones or (iii) pre-agreed schedules. Billings do not necessarily correlate with revenues recognized under the cost-to-cost input
method. The Company records contract assets and contract liabilities to account for these differences in timing.

The contract asset, “Costs and estimated
earnings in excess of billings on uncompleted contracts,” arises when the Company recognizes revenues for services performed under
its construction projects, but the Company is not yet entitled to bill the customer under the terms of the contract. Amounts billed to
customers are excluded from this asset and reflected on the Consolidated Balance Sheets as “Contract assets including retainage,
net.” Included in costs and estimated earnings on uncompleted contracts are amounts the Company seeks or will seek to collect from
customers or others for (i) errors, (ii) changes in contract specifications or design, (iii) contract change orders in dispute, unapproved
as to scope and price, or (iv) other customer-related causes of unanticipated additional contract costs (such as claims). Such amounts
are recorded to the extent that the amount can be reasonably estimated and recovery is probable. Claims and unapproved change orders made
by the Company may involve negotiation and, in rare cases, litigation. Unapproved change orders and claims also involve the use of estimates,
and revenues associated with unapproved change orders and claims are included in the transaction price for which it is probable that a
significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. The Company did not
recognize any material amounts associated with claims and unapproved change orders during the periods presented.

The contract liability, “