Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 194

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 194
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 added tax (“ VAT”). To record VAT payable, the Company uses the gross presentation method, which presents
the taxable services and the available input VAT amount (at the rate applicable to the supplier). Revenues are recorded net of VAT in
accordance with ASC 606. The Company considers revenue realized or realizable and earned when all the five following criteria are met:
(1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price,
(4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies
a performance obligation. The recognition of revenues involves certain management judgments. The amount and timing of our revenues could
be materially different for any period if management made different judgments or utilized different estimates.

F-14

Installation& maintenance

Installation and maintenance services mainly consist
of the following services: technical home installation and repair, maintenance and other after sale services. Revenues from installation
and maintenance services are recognized at a point in time once the service is transferred to the customer. For service arrangements that
include multiple performance obligations, revenues are allocated to each performance obligation based on its standalone selling price.
The Company allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all
deliverables based on the relative selling price method, generally based on the best estimate of selling price. The Company considers
whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is
a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company acts
as principal and has contracts with third-party service providers (i. e., service outlets) who acts as agents. The Company is responsible
for market development and providing the customer information to the service provider, directing the outlet to provide services and coordination
with the customer, while the service provider provides the door-to-door service. The price of services is set by the Company and the service
provider is only responsible for collection of payments. When the Company’s end customers place orders online for services, they
pay either a required visit fee or the estimated full amount of service fee through third-party payment platforms, such as WeChat Pay
and Alipay. If the customer is not satisfied with the chosen provider, the service provider can be re-selected. Regardless of the service
provider’s