Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 100

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 5
Chunk 100
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 the automobile sold cannot be returned after the customer acknowledgement. The selling price, which was specified in the signed sales orders, is fixed. The Company had unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment, which is within 3 months after sales.

Online store

The Company sold various goods through its online store business in fiscal year 2022. For all sales, the Company required a sales order generated by the online store platform, which specifies pricing, quantity and product specifications. The Company was a principal for the online store sales as i) the Company produced or obtained control of the specified goods before transferring to the customers; ii) the Company had the right to determine the sales price; iii) the Company bear the risk of inventories and collection of consideration. Under ASC 606, the Company recognized revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expected to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e. g., value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgment. The selling price, which is specified in the signed sales orders, is fixed. The Company had unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgment unless the customers require sales return within 7 days after the acknowledgement. Customers were required to pay to the third-party platform before the goods were send out and the Company would receive the amount from the third-party platform after the customer sign off the acceptance form on the platform.

Internet information and advertising service

The Company provideed internet information and advertising services online. For all sales, the Company required a signed contract and sales order, which specifies the price and service range. The Company is a principal for the services as i) the Company had the right to determine the sales price; ii) the Company bear the collection risks; iii) the Company was responsible to the service provided. Under ASC 606, the Company recognized revenue upon the satisfaction of its performance obligation, which is to provide specified information and advertising service to customers in an amount that reflects the consideration to which the Company expected to be entitled to in exchange for those services, excluding amounts collected on behalf of third parties (e. g