Company: JOCM
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011600
Chunk: 29

Company: JOCOM HOLDINGS CORP.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 8
Chunk 29
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 consideration it is entitled to in exchange for the services it transfers to its clients.

The
revenue generated was a service fee paid by a client to carry out data analytic services in the Southeast Asia online grocery market.

Use
of estimates

Management
uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported
revenue and expenses during the periods reported. Actual results may differ from these estimates.

Cash
and cash equivalents

Cash
and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions
and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

Intangible
Asset

The
Company follows the guidance according ASC Topic 350, “Testing Indefinite-Lived Intangible Assets for
Impairment” paragraph 350-30-35-18, an intangible asset that is not subject to amortization shall be tested for
impairment annually. There is no legal, regulatory, contractual, competitive, economic, or no foreseeable limit on the period of
time over which it is expected to contribute to the cash flows of the Company, thus the useful life of the asset shall be considered
to be indefinite.

Credit
losses

The
Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables.
Management considers historical collection rates, the current financial status of the Company’s customers, macroeconomic factors,
and other industry-specific factors when evaluating current expected credit losses. Forward-looking information is also considered in
the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable,
management believes that the carrying value, net of expected losses, approximates fair value and therefore, relies more on historical
and current analysis of such financial instruments, including its trade receivables.

Credit
loss rate is determined by historical collection based on aging schedule, adjusted for current conditions using reasonable and supportable
forecasts. Based on the aging categorization and the adjusted loss rate per category, an allowance for credit losses is calculated by
multiplying the adjusted loss rate with the amortized cost in the respective age category.

    F-7

JOCOM
HOLDINGS CORP.

NOTES
TO CONDENSED FINANCIAL