Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 127

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 18
Chunk 127
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 promised goods or services are transferred to the customer in an amount that reflects the consideration expected in
exchange for those goods or services.

The
Company has elected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining
performance obligations that have original expected durations of one year or less.

The
Company elected a practical expedient that it does not adjust the promised amount of consideration for the effects of a significant financing
component if the Company expects that, upon inception of revenue contracts, the period between when the Company transfers its promised
services or deliverables to its clients and when the clients pay for those services or deliverables will be one year or less.

Revenue
is measured based on the consideration to which the Company expects to be entitled in exchange for transferring promised goods or services
to a customer, excluding amounts collected on behalf of third parties.

Revenue
is recognised when the Company satisfies a performance obligation by transferring a promised good or service to the customer, which is
when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time.
The amount of revenue recognised is the amount allocated to the satisfied performance obligation.

SIMPPLE
LTD. AND ITS SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2
Summary of significant accounting policies (cont’d)

Revenue
recognition (cont’d)

The
Company’s principal revenue streams include:

Sale
of goods Commercial customers

The
Company supplies autonomous robotic cleaning equipment for commercial applications.

Revenue
is recognised when the goods are delivered to the customer and all criteria for acceptance have been satisfied. No element of financing
is deemed present as the sales are made with credit terms consistent with market practice. The Company recognises contract liabilities
for consideration received in respect of unsatisfied performance obligations and reports these amounts in its balance sheet.

Revenue
from sale of goods - commercial customers also include revenue from comprehensive maintenance service. For these contracts. We
account for the maintenance service separately from the sales of goods as they are distinct performance obligations. Refer to the discussion
below related to contracts with multiple performance obligations for further details. The transaction price is allocated to separate
performance obligations on a relative stand-alone selling price (“ SSP”) basis. The transactions price allocated to the sales
of goods is recognized when transfer of control of the goods to the customer. The transaction price allocated to the comprehensive maintenance
service is recognized over the contract term.

Sale