Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 91

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 91
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 the accounts receivable balances, payment patterns,
and the forecasted information in pooling basis upon the use of the Current Expected Credit Loss Model (“ CECL Model”) in accordance
with ASC topic 326 - - Financial Instruments - - Credit Losses. We also consider to provide specific allowance for credit
losses for those accounts receivable balances when facts and circumstances have emerged to indicate that these receivables are unlikely
to be collected. Changes in these estimates and assumptions could materially affect the quantity of credit losses. As of December 31,
2024 and 2023, the allowance for credit losses for accounts receivable was $438,864 and $559,382, respectively.

Inventories

Inventories consist of goods in transit and finished
goods and are stated at the lower of cost or net realizable value. The cost of inventories is calculated using the weighted average basis.
Net realizable value is the estimated selling price in the normal course of business less any costs to sell products. We periodically
evaluate inventories for their net realizable value adjustments and reduce the carrying value of those inventories that are obsolete
or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and expiration dates,
as applicable, taking into consideration historical and expected future product sales. For the years ended December 31,2024, 2023 and
2022, provision (reversal) of $235,674, ($438,949) and $1,102,119, respectively were recorded in cost of revenues in the consolidated
statements of operations and comprehensive loss.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES