Company: RHNO
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001493152-25-022052
Chunk: 119

Company: RHINO BITCOIN INC.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1B
Chunk 119
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. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the
terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations
in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance
obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to
contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers
to its clients.

9

Revenue
is measured at the fair value of the consideration received or receivable, net of discounts and taxes applicable to the revenue. The
Company derives its revenue from solar PV system installation services, consultancy services provided
to customers on engineering, equipment procurement and transportation, construction on solar plant.

The
revenue from long term contract is recognized by reference to the stage of completion of the contract activity at the end of the reporting
period, the stage of completion is measured by the proportion that costs incurred for work performed to date bear to the estimated total
costs. The revenue from non-contract customers is recognized upon the delivery of services.

The
Company applied judgements and assumptions that significantly affect the determination of the amount and timing of revenue recognized
from contracts with customers for green energy solutions engineering projects, ship and offshore maintenance, repair and operation services.
The Company measures the performance of service work done by comparing the actual costs incurred with the estimated total costs required
to complete the services. Significant judgements are required to estimate the total contract costs to complete. In making these estimates,
management relied on estimates and also on past experience of completed projects. A change in the estimates will directly affect the
revenue to be recognized.

Cost
of revenue

Cost
of revenue includes the cost of services in providing consultancy services and installation services.

Income
taxes

Income
taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”).
Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to taxable income in the year in which those temporary differences are
expected to be recovered or settled. Any effect on deferred tax assets and liabilities of