Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 277

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 277
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                 |  62,377 |
| Accrued expenses             |     |     |            1,250,987 |     |            |             632,062 |     |                 |  81,033 |
|                              |     |     |            1,523,672 |     |            |           1,118,601 |     |                 | 143,410 |

Payroll and Welfare Payables: The payroll
and welfare payables represent amounts owed to employees for services rendered and the associated mandatory provident fund (MPF) contributions.
Under the Hong Kong MPF Scheme, the Company is required to make contributions based on a percentage of qualified employees’ salaries.
The Company recognized employee benefit expenses of HK$1,737,810 and HK$2,306,328 (US$295,683) for the six months ended June 30, 2023,
and 2024, respectively.

Composition of Accrued Expenses

Accrued expenses primarily consist of amounts due
for professional services, sales commission, marketing expenses and other office and operating expenses related to ongoing operational
activities. These expenses are recognized as liabilities when the Company has received the services but has not yet paid for them as
of the balance sheet date. The components of accrued expenses as of June 30, 2024, include:

| (i)  | Professional services fees: HK$608,000 (US$77,948)       |
| (ii) | Other office and operating expenses:HK$24,062 (US$3,085) |

The decrease in accrued expenses from HK$1,250,987
as of December 31, 2023 to HK$632,062 as of June 30, 2024 is mainly attributable to the settlement of accrued marketing expenses of HK$706,495
during the period.

Timing and Classification

All amounts recorded in accrued expenses and other
current liabilities are classified as current liabilities and are expected to be settled within 12 months of the balance sheet date.
These liabilities represent the Company’s short-term obligations and are due in the normal course of business operations.

Employee Benefit Accrual Methodology

The Company calculates its employee benefit liabilities,
including MPF contributions, based on statutory requirements and internal compensation policies. Contributions are calculated as a percentage
of each eligible employee’s gross salary and are accrued monthly in accordance with ASC 710 (Compensation). The contributions are
made to the MPF on behalf of employees as required