Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 250

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 250
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. | Creation                                                                                                                                  
 or Enhancement of Customer-Controlled Asset: The services provided do not create or enhance an asset that the customer controls           
 as the services are performed. The customer does not gain control until the services are completed.                                       |
| 3. | No                                                                                                                                        
 Alternative Use and Enforceable Right to Payment: While the deliverables are tailored                                                     
 to customer-specific requirements, they do not meet the “no alternative use” criterion                                                    
 because, in practice, the Company can reconfigure partially completed deliverables for other                                              
 projects, albeit with additional effort.                                                                                                  
 More importantly, the Company does not have an enforceable right to                                                                       
 payment for performance completed to date. Engagement letters typically permit termination at any time without penalty, and payment terms 
 do not obligate the customer to pay for partially completed work.                                                                         |

Accordingly, control is transferred to the customer at a point in time, and revenue is recognized at that time.

| F-50 |

Contracts with Multiple Promises

The Company frequently enters into contracts with customers that contain multiple promises, including hardware, software, IT application licenses, and IT professional services. To determine whether these promises are distinct within the context of the contract, the Company applies the guidance in ASC 606-10-25-19 through 25-22, which requires an assessment of whether:

| 1. | The                                                                                       
 customer can benefit from the good or service on its own or with other readily available  
 resources; and                                                                            |
| 2. | The                                                                                       
 promise to transfer the good or service is separately identifiable from other promises in 
 the contract.                                                                             |

A promised good or service is not distinct if it is highly interdependent and interrelated with other promises, meaning its function is significantly affected by the other promises in the contract. BC32 of ASC 606 states:

“An entity should assess whether two or more promises in a contract are so highly interrelated and interdependent that they cannot be separated.”

Additionally, BC33(a) and (b) explain that if an entity provides a significant service of integrating multiple items into a combined output, those items are not distinct, as they serve as inputs to a unified deliverable rather than separate obligations.

Based on this guidance, the Company has determined that IT professional services are not distinct from hardware, software, or IT application licenses in certain contracts because they are necessary inputs to delivering a fully integrated IT solution rather than stand-alone deliverables.

Contract Scenarios and Distinctness Evaluation

1. Sale of