Company: CHOW
Filing Date: 2025-03-19
Form Type: DRS/A
Source: 0001493152-25-010898
Chunk: 251

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-03-19
Form: DRS/A
Chunk 251
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 Hardware Products with IT Professional Services (e.g., Setup, Development, Customization, or Integration Services)

Nature of Promises & Intended Benefit to the Customer

In contracts where the Company sells hardware products, the hardware provides computing capability to the customer. However, the hardware alone does not deliver its full intended benefit without installation, configuration, and integration services. IT professional services ensure that the hardware is properly installed, tested, and integrated within the customer’s existing IT infrastructure, making it functional.

Assessment of Interdependency and Significant Effect on Utility

The Company has determined that hardware and IT professional services are not separately identifiable because:

| ● | The                                                                                         
 hardware requires IT services to be installed and configured before it can be used.         |
| ● | The                                                                                         
 IT professional services significantly modify and enhance the hardware, making them highly  
 interdependent.                                                                             |
| ● | Per                                                                                         
 BC33(a), IT professional services are an input to a combined output, rather than a separate 
 deliverable.                                                                                |

Why IT Professional Services Are an Input to the Combined Output

The Company considered the following factors in concluding that IT professional services are an input to a combined output:

| ● | Level                                                                                           
 of Integration: IT professional services ensure that the hardware is installed and operational  
 within the customer’s environment.                                                              |
| ● | Modification                                                                                    
 & Customization: The services configure the hardware to align with the customer’s               
 operational needs.                                                                              |
| ● | Customer                                                                                        
 Dependency: The customer does not receive a functional hardware system without the accompanying 
 installation and integration services.                                                          |

Revenue Recognition Conclusion

Since the hardware and IT professional services are highly interdependent and form a single performance obligation, revenue is recognized at a point in time when the fully integrated system is transferred to the customer, typically upon completion of hardware installation and customer acceptance.

2. Sale of Software and IT Application Products with IT Professional Services (e.g., Setup, Development, Customization, or Integration Services)

Nature of Promises & Intended Benefit to the Customer

In contracts where the Company provides software, the software delivers core processing and operational capabilities to the customer. However, in many cases, the software requires customization, configuration, and integration to be compatible with the customer’s existing IT environment. IT professional services ensure that the software is properly deployed, customized, and integrated to meet the customer’s specific business processes.

Assessment of Interdependency and Significant Effect on Utility

The Company has determined that software and IT professional services are not separately identifiable because:

| ● |