Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 187

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 187
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party companies. Loan receivables are recorded at the outstanding principal amount, net of an allowance for credit losses if applicable.
The Company assesses the collectability of loan receivables on a periodic basis in accordance with ASC 326, Financial Instruments - 
Credit Losses. An allowance for credit losses is established when management determines that it is probable that not all amounts will
be collected according to the contractual terms. The assessment is based on factors such as the borrower’s financial condition,
payment history, current economic conditions, and reasonable and supportable forecasts. Loan balances are written off when collection
is deemed not probable and all collection efforts have been exhausted.

Interest income of loan receivables is recognized
based on the contractual interest rates using the effective interest method. Interest receivable recorded in prepayments, deposits and
other current assets represents accrued interest that has been earned but not yet received as of the balance sheet date. Accrued interest
is evaluated for collectability together with the related loan receivables and is included in the allowance for credit losses, if applicable.

F-10

Prepayments, deposits and other current assets

Prepayments, deposits and other current assets
refer to prepaid for marketing fee, receivable from equity transfer, tax receivable and so on. Prepaid marketing fees are amortized during
the contract periods which are within 1 year.

The Company reviews a supplier’s credit
history and background information before advancing a payment. If the receivables expected not to be collected, the Company would write
off such amount in the period when it is considered as impaired. For the years ended June 30, 2025, 2024 and 2023, the Company assessed
the recoverability of its accounts receivable and record expected credit losses of $1,342,454, Niland Nil, respectively.

Inventories

Inventories primarily include purchased accessories,
appliances and E-watches for senior care services. Cost of inventories is based on purchase costs. Inventories are stated at the lower
of cost or net realizable value. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated
costs to completion for work in progress. For the years ended June 30, 2025, 2024 and 2023, the Company recorded impairment provision
of inventories for lower of cost or net realizable value of Nil, Niland $119,782, respectively.

Property and equipment, net

Property and equipment are stated