Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 155

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 155
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 ended December 31, 2024, the Company reported
a net loss of approximately $8.0million, and accumulated deficit of approximately $34.0million.

The consolidated financial
statements have been prepared on a going concern basis in view of the Company will be able to:

(a) obtain continued
financial support from its related party or its ability to obtain external financing; or

(b) further implement management’s business
plan to extend its operations and generate sufficient revenues to meet its obligations.

In assessing its liquidity, management monitors
and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources and ability to obtain additional financial
support in the future, and its operating and capital expenditure commitments.

Presently, the Company’s principal sources
of liquidity are proceeds from its public offering, private placement, registered direct offering and revenue. As of December 31, 2024,
the Company had cash of approximately $2.2million and working capital of $10.3million. $2.1million of the cash were
held by the VIE with banks and financial institutions inside China as the Company conducted its operations primarily through the consolidated
VIE in China. With the uncertainty of the current market, management believes it is necessary to enhance the collection of the outstanding
balance of accounts receivable and other receivables, and to be cautious on operational decisions and project selections. As of March
31, 2025, approximately $704thousand, or28%, of its accounts receivable balance as of December 31, 2024 were collected, and approximately
$2.9million or76% of its advances to supplier balance as of December 31, 2024 were utilized.

For the Company’s operational strategy,
in fiscal 2024, the Company continued focus on implementation of the Company’s business expansion plan in increase of its customer
and distributor bases, products and brands promotions, and enhanced GMV quality. The management plans to take measures to reduce costs
and gradually turn the company from the current loss into profit in next 1 to 2 years, such as reducing promotional expenses to increase
gross profit, and reducing marketing expenses etc. In addition, in the future, (i) the Company’s Form F-3 registration was declared
effective on August 31, 2022 (File No. 333-264109) and the Company may also seek equity financing from outside investors if necessary.
(ii) expand new businesses and explore new channels, for instance, develop