Company: WCT
Filing Date: 2025-05-16
Form Type: 20-F
Source: 0001213900-25-044576
Chunk: 132

Company: Wellchange Holdings Co Ltd
Filing Date: 2025-05-16
Form: 20-F
Item: Item 19
Chunk 132
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 satisfies a performance  

The Company has elected to apply the practical
expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original
expected durations of one year or less.

The Company elected a practical expedient that
it does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects that,
upon the inception of revenue contracts, the period between when the Company transfers its promised services or deliverables to its clients
and when the clients pay for those services or deliverables will be one year or less.

As a practical expedient, the Company elected
to expense the incremental costs of obtaining a contract when incurred if the amortization period of the asset that the Company otherwise
would have recognized is one year or less.

Generally, revenue is recognized when the Company
has negotiated the terms of the transaction, which includes determining either the overall price, the service or product has been delivered
to the customer, no obligation is outstanding regarding that service or product, and the Company is reasonably assured that funds have
been or will be collected from the customer.

The service offerings by the Company mainly comprise
the following:

(a) Customized
software solutions

The Company is engaged to provide a wide range
of customized IT software including desktop software development service, web and mobile application development services. The contract
is typically fixed priced with no variable consideration and does not provide any post contract client support or upgrades. The Company’s
contracts are generally non-cancellable and non-refundable in the event of cancellation. The Company designs software and system based
on clients’ specific needs which require the Company to perform services including design, development, and integration. These services
also require significant customization. A series of promises are identified in a contract. But these promises are interrelated and not
distinct. These promises are inputs used to complete the service. The customers cannot benefit from any standalone promise. Thus only
one performance obligation with standard quality guarantee is identified in a contract. The performance obligation is satisfied at a point
of time and recognized as revenue upon the completion of services to the customers, usually at the time when the result of services is
tested and accepted by the customers. The duration of the development period is short, usually less than one year. The contracts contain
negotiated billing terms which generally include multiple payment phases throughout the contract term and a portion of contract amount
usually is billed upon the completion of the related projects. Contract liabilities will be