Company: CHOW
Filing Date: 2025-04-01
Form Type: F-1
Source: 0001641172-25-001938
Chunk: 89

Company: ChowChow Cloud International Holdings Ltd
Filing Date: 2025-04-01
Form: F-1
Chunk 89
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 software and IT application licenses that grant customers the right to use proprietary software. These software products and licenses provide immediate functionality and enable the customer to operate the software in their IT environment.

Additionally, these contracts may include maintenance and support (M&S) services, which typically consist of:

| ● | Technical                                                                                     
 support to assist the customer with troubleshooting and operational issues.                   |
| ● | Unspecified                                                                                   
 software updates and patches to enhance security, performance, or compatibility with evolving 
 IT environments.                                                                              |
| ● | Access                                                                                        
 to periodic feature upgrades, if applicable.                                                  |

The primary intended benefit to the customer is the use of the software license. The maintenance and support services supplement the software usage by ensuring that it continues to operate effectively but do not modify or enhance the software’s core functionality at the time of transfer.

| 55 |

Assessment of Interdependency and Significant Effect on Utility

To determine whether the software license and M&S services are distinct within the context of the contract, the Company evaluates whether:

| ● | The                                                                                         
 customer can benefit from the software license independently – The software license,        
 upon delivery or activation, provides immediate utility and enables the customer to conduct 
 business operations without requiring immediate maintenance or support intervention.        |
| ● | The                                                                                         
 M&S services does not significantly affect the customer’s ability to benefit from           
 the software license – The maintenance and support services do not alter the fundamental    
 usability of the software, as the customer can continue to use the software with or without 
 receiving M&S services.                                                                     |
| ● | The                                                                                         
 software license and M&S services are not highly interdependent – While M&S                 
 ensures the software remains functional over time, it does not significantly integrate with 
 or modify the software itself. The software retains its core functionality independently,   
 making M&S a separately identifiable promise rather than an input to a combined output.     |

Based on these factors, the Company concludes that the software license and M&S services are distinct performance obligations because they do not significantly affect each other’s standalone utility. This assessment aligns with ASC 606-10-25-21 and BC32, which emphasize that promises should be considered distinct if they do not integrate, modify, or significantly impact each other’s functionality.

However, the Company assessed that the M&S services are immaterial to the total transaction price and do not significantly impact the timing or amount of revenue recognized. In these cases, the software license and M&S services are treated as a single performance obligation, consistent with ASC