Company: CHOW
Filing Date: 2025-09-02
Form Type: F-1/A
Source: 0001641172-25-026148
Chunk: 191

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-09-02
Form: F-1/A
Chunk 191
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 BC32, which emphasize that promises should be considered distinct if they do not integrate, modify, or significantly impact each other’s functionality.

However, the Company assessed that the M&S services are immaterial to the total transaction price and do not significantly impact the timing or amount of revenue recognized. In these cases, the software license and M&S services are treated as a single performance obligation, consistent with ASC 606 guidance on immaterial performance obligations.

Why Maintenance & Support Services Are Not an Input to a Combined Output

Unlike IT professional services, which significantly modify or integrate hardware and software to form a single functional solution, maintenance & support services:

| ● | Do                                                                                         
 not alter or enhance the software at the time of transfer – The customer receives          
 an operational software license upon delivery, and M&S provides future support rather      
 than modifying the existing software.                                                      |
| ● | Are                                                                                        
 not required for the customer to derive initial benefit from the software – The            
 customer can use the software independently, and the M&S services merely support long-term 
 usability.                                                                                 |
| ● | Do                                                                                         
 not significantly integrate with or change the underlying software – The services          
 are supplementary rather than essential for the initial use of the product.                |

As such, M&S services do not qualify as an input to a combined output under BC33(a) or (b) and are therefore evaluated separately from the software license.

Revenue Recognition Conclusion

Since the Company has determined that M&S services are immaterial to the total transaction price, the software license and M&S services are treated as a single performance obligation for simplicity in revenue recognition.

| ● | Revenue                                                                                     
 for the combined performance obligation is recognized at a point in time when control of    
 the software license is transferred to the customer, typically upon delivery or activation. |
| ● | Any                                                                                         
 revenue associated with M&S services is included in the total transaction price of the      
 software license and recognized at the same point in time, as the distinction between the   
 two does not materially impact revenue timing.                                              |

| F-15 |

Variable Consideration

The Company estimates variable consideration, including potential refunds, penalties, or performance bonuses, using the expected value or most likely amount method, depending on which better predicts the amount of consideration to which the Company will be entitled. The Company recognizes revenue only to the extent that it is probable that a significant reversal of cumulative revenue will not occur. For the years ended December 31, 2023, and 2024, the Company did not have any contracts