Company: CHOW
Filing Date: 2025-02-10
Form Type: DRS/A
Source: 0001493152-25-005658
Chunk: 221

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-02-10
Form: DRS/A
Chunk 221
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 for economic use, regardless of its actual deployment or operational use. Amortization expenses for the years ended December 31, 2022, and 2023, were HK$0 and HK$378,801 (US$48,564), respectively. Amortization is calculated on a straight-line basis over the asset’s useful life of 5 years.

| F-33 |

Impairment Considerations: The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The impairment test compares the carrying amount to the undiscounted future cash flows expected to result from the use of the asset. If the carrying amount exceeds the undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and the fair value of the asset. For the years ended December 31, 2022, and 2023, no impairment indicators were identified, and no impairment losses were recognized.

11. ACCOUNTS PAYABLE

The following table presents the balances of accounts payable as of December 31, 2022 and 2023:

|                  |     | As of December 31, |            |     |      |           |     |           |         |
|                  |     |               2022 |            |     | 2023 |           |     |           |         |
|                  |     |                HK$ |            |     |  HK$ |           |     | US$ (Note 
 2(e))     |         |
| Accounts payable |     |                    | 18,202,230 |     |      | 7,079,837 |     |           | 907,671 |

Accounts payable represent amounts due to suppliers for subcontracting fees, hardware costs, software license costs, and IT application license costs. As of December 31, 2022, the accounts payable balance included an IT application license cost of HK$11,022,495 related to an IT professional services project. This amount was fully settled during the year ended December 31, 2023.

Payment Terms

The Company’s accounts payable are current liabilities, typically due within 30 to 90 days of the invoice date, depending on the terms negotiated with each supplier. The Company’s payment practices aim to align with standard industry terms and cash flow management practices. All payables related to the 2022 IT application license cost were settled within 12 months as per the terms of the agreement with the supplier.

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