Company: JSKJ
Filing Date: 2025-11-17
Form Type: F-1
Source: 0001477932-25-008401
Chunk: 228

Company: Jiansu (Shanghai) Information Technology Co., Ltd
Filing Date: 2025-11-17
Form: F-1
Chunk 228
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adjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3 — Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions market participants would use in pricing the asset or liability based on the best available information.

The Company’s financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, advances to suppliers, loan to related parties, prepayments and other current assets, equity investment, short-term borrowings, accounts payable, notes payable, contract liabilities, due to related parties, and accrued expenses and other current liabilities. The equity investment was classified as Level 3 of the fair value hierarchy.

The carrying amounts reported in the balance sheet for the financial instruments mentioned above approximate their fair value based on the short-term maturity of these instruments. The Company believes that the carrying amount of the short-term borrowings approximate fair value based on the terms of the borrowings and current market rates as the rates ofthe borrowings are reflective of the current market rate.

Transfers into or out of the fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities become unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the period in which they occur. The Company did not transfer any assets or liabilities in or out of Level 2 and Level 3 during the fiscal years ended June 30, 2024 and 2023.

Accounts Receivable

Accounts receivable represent trade receivable and adjusted for any allowance for expected credit loss. The Company grants credit to customers, without collateral, under normal payment terms (typically 7 to 60 days from date of the receipt confirmation). The Company typically receives the receipt confirmation within 3 days after delivery. The carrying value of such receivables, net of expected credit loss and allowance for doubtful accounts, represents its estimated realized value. The Company expects to collect the outstanding balance of current accounts receivables, net, within one year.

If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statements of income and comprehensive income within operating expenses.

Inventories

Inventories are comprised of purchased