Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 85

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 85
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 from (i) sale of hardware products,(ii) sale of software and IT application products,(iii) maintenance and support services, (iv) IT professional services and(v) contracts with multiple promises.

We account for our revenue under ASC Topic 606, Revenue from Contracts with Customers. We recognize our revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To achieve this core principle, we apply the following five steps:

| (a) | Identification                                                                                                                 
 of the contract(s) with the customer;                                                                                          |
| (b) | Identification                                                                                                                 
 of the performance obligations in the contract;                                                                                |
| (c) | Determination                                                                                                                  
 of the transaction price, including any variable consideration;                                                                |
| (d) | Allocation                                                                                                                     
 of the transaction price to the performance obligations in the contract based on their relative standalone selling prices; and |
| (e) | Recognition                                                                                                                    
 of revenue when, or as, we satisfy a performance obligation.                                                                   |

Sale of Hardware Products

We recognize revenue from the sale of hardware products at the point in time when control of the hardware is transferred to the customer. This typically occurs upon delivery and acceptance of the hardware, when the customer gains the ability to use and benefit from the hardware.

Sale of Software and IT Application Products

We recognize revenue from the sale of software and IT application products, which may include packaged software, customized setup implementation, or integrated hardware and software platforms, at the point in time when control of the software is transferred to the customer.

The software or IT application license constitutes a “right to use” intellectual property (IP), as defined in ASC 606-10-55-54, because it provides the customer with control over the software from the point of delivery or activation.

A right-to-use license grants the customer a license to the software as it exists at the time the license is granted, with no significant ongoing updates or support that would make it a “right to access” license.

As such, revenue for the license is recognized at a point in time when control is transferred, typically upon delivery or activation of the software, in accordance with ASC 606.

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Maintenance and Support Services

Maintenance and support services related to software products typically consist of unspecified future updates and upgrades, as well as technical support provided over a period of one to 12 months. These services represent stand-alone performance obligations, and