Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 141

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 141
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 accounts receivable balances, credit quality of the Company’s customers
based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions,
and other factors that may affect the Company’s ability to collect from customers. Accounts receivable is written off after all
collection efforts have ceased. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Company
has satisfied its performance obligation and has the unconditional right to payment. As of December 31, 2024 and 2023, the allowance for
credit losses for accounts receivable was $438,864and $559,382, respectively. For the years ended December 31, 2024, 2023 and 2022, the
recognized credit losses (reversed in collection) of ($113,345), $474,982and ($11,631), 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.
Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and
damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company
takes ownership, risks and rewards of the products purchased, and has sole discretion in establishing prices for the goods to be sold.
Write downs are recorded in cost of revenues in the Consolidated Statements of Operations and Comprehensive Loss. Write down
(reversal) of $235,674($438,949) and $1,102,119were recorded in cost of revenues in the consolidated statements of operations
and comprehensive loss for the years ended December 31, 2024, 2023 and 2022, respectively.

Property and equipment, net

Property and equipment are stated at cost less
accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset
to its present working condition and location for its intended use.

Depreciation is computed on a straight-line basis
over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows:

                             Useful life  
  Electronic equipment       3 ~ 5 years  
  Office furniture           5 years      
  Leasehold improvement      5 years      
  Vehicles                   4 years      

The cost and related accumulated depreciation
of assets sold or