Company: CLIK
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001493152-25-019286
Chunk: 116

Company: Click Holdings Ltd.
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 116
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assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires
waiting to recognize a loss until it is probable of having been incurred.

Accounts
receivable is stated at its original invoiced amount. To determine the extent of related collection risk on the accounts receivable,
the Company adopted the expected credit losses (“ CECL”) model, which is based on management’s historical collection
experience, age of the receivable, the economic environment, industry trend analysis, and the current credit profile and financial condition
of the customers. The Company classifies its customers into categories with similar risk characteristics. Each risk category is assigned
a base loss rate, which is adjusted upwards using an aging matrix. Management reviews its receivables on a regular basis to determine
if the allowance for expected credit losses is adequate and adjusts the allowance, including the base loss rate and adjustment factors,
when necessary. Delinquent account balances are written-off against the allowance for expected credit losses after all means of collection
have been exhausted and that the likelihood of collection is not probable.

CLICK
HOLDINGS LIMITED AND SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

J. Deferred offering cost

Deferred
offering cost consists primarily of legal, accounting, underwriting fees and other costs incurred in connection with the Company’s
IPO in the United States. These costs, together with the underwriting discounts and commissions, were charged to additional paid-in capital
upon completion of the IPO during the year ended June 30, 2025.

K. Property and equipment, net

Property
and equipment primarily consists of leasehold improvement and office equipment and other, which is stated at cost less accumulated depreciation
less any impairment losses. The cost of property and equipment comprises its purchase price and any directly attributable costs of bringing
the asset to its working condition and location for its intended use. Depreciation is computed using the straight-line method based on
the estimated useful life.

SCHEDULE
OF PROPERTY PLANT AND EQUIPMENT, USEFUL LIFE

  Fixed                    Useful                                      
  Asset Category           lives                                       
 ───────────────────────────────────────────────────────────────────────
  Office                   5 years                                     
  Leasehold                Shorter                                     

Costs
of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation
of assets disposed of or retired