Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 137

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 137
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 eliminated
upon consolidation.

Consolidation of Variable
Interest Entity and its subsidiaries

A VIE is an entity that either has a total equity
investment that is insufficient to finance its activities without additional subordinated financial support, or whose equity investors
lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns
of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary
of, and must consolidate, the VIE.

Shanghai Jowell is deemed to have a controlling
financial interest through a series of contracture agreements and be the primary beneficiary of Shanghai Juhao because it has both of
the following characteristics:

  (1)      The power to direct activities at Shanghai Juhao that most significantly impact such entity’s economic performance, and                           
  (2)      The obligation to absorb losses of, and the right to receive benefits from, Shanghai Juhao that could potentially be significant to such entity.  

Pursuant to the contractual arrangements with
Shanghai Juhao, Shanghai Juhao shall pay service fees equal to all of its net profit after tax payments to Shanghai Jowell. Such contractual
arrangements are designed so that the Shanghai Juhao would operate for the benefit of Shanghai Jowell and ultimately, the Company.

Accordingly, the accounts of the Shanghai Juhao
are consolidated into the Company’s financial statements pursuant to ASC 810-10, “ Consolidation”. In addition, their
financial positions and results of operations are included in the Company’s financial statements. The carrying amount of this VIE’s
assets and liabilities before elimination of intercompany balances and transactions between the parent company, non-VIE subsidiaries,
VIE and VIE’s subsidiaries are as follows:

                                   December 31,      December 31,  
  Current assets                    $17,497,021       $26,530,156  
  Total non-current assets           $8,214,924        $8,635,413  
  Total assets                      $25,711,945       $35,165,569  
  Total current liabilities         $43,316,299       $42,847,427  
  Total non-current liability        $1,520,059        $1,032,235  

                          For the years ended December 31,                                                                          
                          2024                                                   2023                        2022                   
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