Company: CHOW
Filing Date: 2025-09-02
Form Type: F-1/A
Source: 0001641172-25-026148
Chunk: 83

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-09-02
Form: F-1/A
Chunk 83
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 | Recognition                                                                                                             
 may materially and adversely affect our business, financial condition and results of operations.                        |
| ● | Increases                                                                                                               
 in labor costs in Hong Kong may adversely affect our business and results of operations.                                |

The above does not list all the material risk factors that may affect our financial condition and results of operations. The above-mentioned risks and others are discussed in more detail in the section titled “Risk Factors.”

| 52 |

Critical Accounting Policies and Estimates

We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), which requires us to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenues and expenses during the fiscal years. Significant accounting estimates reflected in our consolidated financial statements mainly include the incremental borrowing rate used in the recognition of right-of-use assets and lease liabilities, allowance for the expected credit losses, the useful lives of property and equipment, valuation allowance for deferred tax assets and the estimated performance obligations completion progress towards certain services revenue. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

Revenue Recognition

Our revenues are primarily generated from (i) sale of hardware products,(ii) sale of software and IT application products,(iii) maintenance and support services, (iv) IT professional services and(v) contracts with multiple promises.

We account for our revenue under ASC Topic 606, Revenue from Contracts with Customers. We recognize our revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To achieve this core principle, we apply the following five steps:

| (a) | Identification                                                                                                                 
 of the contract(s) with the customer;                                                                                          |
| (b) | Identification                                                                                                                 
 of the performance obligations in the contract;                                                                                |
| (c) | Determination                                                                                                                  
 of the transaction price, including any variable consideration;                                                                |
| (d) | Allocation                                                                                                                     
 of the transaction price to the performance obligations in