Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 115

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 115
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 maintains its cash at banks in Hong Kong
and has not experienced any losses from such concentrations.

H. Financial asset - contingent consideration asset

The
Company recognizes contingent consideration asset arising from business combinations as a financial asset when it represents a right
to receive a refund or clawback of previously transferred consideration (e. g., from a profit guarantee arrangement). Such assets are
initially measured at fair value on the acquisition date and included for the purpose of calculating goodwill under ASC 805,
Business Combinations.

Contingent
consideration asset is

The
Company derecognizes the financial asset upon settlement (e. g., receipt of payment), expiration of the right, or when the asset is transferred
and the transfer qualifies for derecognition.

For
the year ended June 30, 2025, the Company acquired Top Spin which indirectly holds Care U, a Hong Kong-based provider of nursing solution
services. As part of the acquisition, the Company received a two-year profit guarantee from the vendor, entitling the Company to a refund
each of the two years if Care U’s net income for the year ending June 30, 2026 and 2027, falls below an agreed target.

The
contingent consideration asset recognized at a fair value of HKD 1,680,000 215,385 5.25

The
reconciliation from the opening balances to the closing balances for recurring fair value measurements of the fair value hierarchy for
the year ended December 31, 2023, the six months ended June 30, 2024 and the year ended June 30, 2025 are as follows:

SCHEDULE
OF RECURRING FAIR VALUE MEASUREMENTS OF THE FAIR VALUE HIERARCHY

                                                                          Fair       
  Financial                                                               HKD        
  Balance as of January 1, 2023, December 31, 2023 and June 30, 2024      —          
  Addition                                                                1,680,000  
  Change of fair value recognized                                         —          
  Balance as of June                                                      1,680,000  
  Balance as of June                                                      215,385    

I. Expected credit loss and accounts receivable

Accounting
Standards Update (ASU) 2016-13, “ Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments”
(Topic 326) requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial