Company: CHOW
Filing Date: 2025-02-28
Form Type: DRS/A
Source: 0001493152-25-008591
Chunk: 278

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-28
Form: DRS/A
Chunk 278
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:----|---------------------:|:--|:----|:-----------|--------------------:|:--|:----|:----------------|--------:|:--|
|                                                  |     | HK$ |                      |   |     | HK$        |                     |   |     | US$ (Note 2(e)) |         |   |
|                                                  |     |     |                      |   |     | -Unaudited |                     |   |     | -Unaudited      |         |   |
| Information technology service management system |     |     |            2,206,846 |   |     |            |           3,404,742 |   |     |                 | 436,505 |   |
|                                                  |     |     |            2,206,846 |   |     |            |           3,404,742 |   |     |                 | 436,505 |   |
| Less: Accumulated amortization                   |     |     |             (378,801 | ) |     |            |            (639,415 | ) |     |                 | (81,976 | ) |
| Intangible asset, net                            |     |     |            1,828,045 |   |     |            |           2,765,327 |   |     |                 | 354,529 |   |

The increase in the intangible asset during 2024
represents additional development costs incurred to enhance and expand the system’s functionality, reflecting the Company’s
ongoing investment in its proprietary software platform.

Amortization: Amortization of the intangible asset
began in 2023 when the asset was ready for its intended use. The timing of amortization reflects the asset’s readiness for economic use,
regardless of its actual deployment or operational use. Amortization expenses for the six months ended June 30, 2023, and 2024, were
HK$158,117 and HK$260,614 (US$33,412), respectively. Amortization is calculated on a straight-line basis over the asset’s useful
life of 5 years.

Impairment Considerations: The Company reviews its
intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable.
The impairment test compares the carrying amount to the undiscounted future cash flows expected to result from the use of the asset.
If the carrying amount exceeds the undiscounted