Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 140

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 140
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 liquidation or dissolution of the Company, its PRC subsidiary and the VIE. The Company, Jowell Tech, and Shanghai
Jowell are essentially holding companies and do not have active operations as of December 31, 2024 and 2023. The Company, its subsidiaries,
and VIE do not have any plan to distribute dividend or settle amounts owed under the VIE Agreements in the foreseeable future. The cash
transfer among the holding company, its subsidiaries and VIE is typically transferred through payment for intercompany services or intercompany
borrowing between holding company, subsidiaries and VIE.

F-11

Use of estimates

In preparing the consolidated financial statements
in conformity with U. S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts
of revenues and expenses during the reporting years. Significant items subject to such estimates and assumptions include, but not limited
to, allowance for credit losses and advance to suppliers, valuation of inventories, and impairment of long-lived assets. Actual results
could differ from those estimates.

Cash

For purposes of the statements of cash flows,
the Company considers all highly liquid instruments purchased with an original maturity of three months or less and money market accounts
to be cash equivalents. As of December 31, 2024 and 2023, the Company had no cash equivalents.

Restricted cash

Restricted cash represents required cash deposit
as a part of collateral for the bank loan (see Note 10). The Company earns interest at a variable rate per month on this deposit. As of
December 31, 2024 and 2023, the Company had restricted cash of niland nil, respectively.

Accounts receivable, net of allowance for credit
losses

The Company maintains an allowance for credit
losses and records the allowance for credit losses as an offset to accounts receivable. The estimated credit losses charged to the allowance
is classified as “ General and administrative” in the consolidated statements of operations and comprehensive income.
The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily
based on similar business line, service or product offerings and on an individual basis when the Company identifies specific customers
with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical
collectability based on past due status, the age of the