Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 139

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 139
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 for acceptance testing and the acceptance report is signed, which represents the point in time that the performance obligation
of the contract is satisfied and the ownership control of the software is transferred to the client.

Differences between the timing of billings and
the recognition of revenues are recorded as advance from customers which is classified as current liabilities on the consolidated balance
sheets. When the right to payment becomes unconditional, the amount due from the customer under the contract, net of the related advances
from the customer, is recorded as accounts receivables.

Costs incurred in advance of revenue recognition
arising from direct and incremental staff costs in respect of services provided under the contracts according to the customer’s
requirements prior to the delivery of services are recorded as deferred contract costs which is included in the prepayments, deposits
and other assets, net on the consolidated balance sheets. Such deferred contract costs are recognized upon the recognition of the related
revenues.

We work closely with the customers to analyze their
software requirements, develop system specifications with them, and start coding and testing once we reach a conclusion on the specifications.
The completed software system will then be delivered to customers for testing before their final acceptance. Our software solutions serve
a variety of industries and sectors, including in restaurant management, property management, exhibit and conferencing services, and solar
power stations.

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For the six months ended December 31, 2024 and
2023, our main products under our custom software solutions offering include software products developed for property management companies,
restaurant management, intelligent music generation, and highway monitoring and control. Customers can choose to buy a basic version with
minimal alterations or customize additional functions to suit their needs. We plan to significantly expand the number of customers we
serve to diversify our customer base and grow our revenues. Revenues from a new customer often rise quickly over the first several years
following our initial engagement as we expand the services that we provide to that customer. Therefore, obtaining new customers is important
for us to achieve rapid revenue growth.

As a young company with limited operating history
and limited customer base, we are constantly looking for opportunities to develop new customers and expand into new business areas. The
solar energy sector, for example, is an area with significant government support and business opportunities. For example, in 2022, after
studying the potential of the market for management system used by solar energy power plants, the Company decided to develop a management
software for distributed photovoltaic