Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 142

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 142
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 otherwise retired are removed from the accounts and any gain or loss is included in the consolidated statements of operations
and comprehensive income.

F-12

Construction in progress

Construction in progress is comprised primarily
of Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as
incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The fiscal
years ended December 31, 2024 and 2023 the construction in progress assets were related to lease in improvement of manufacturing facilities
for the Company. Interest expense on outstanding debt is capitalized during the period of significant capital asset construction. Capitalized
interest on construction in progress is included in property and equipment and is amortized over the life of the related assets. During
the years ended December 31, 2024 and 2023, the Company capitalized niland nilof interest expense.

Intangible assets, net

Intangible assets consist primarily of customized
software systems purchased from third-party vendors, used for accounting and business operation. Intangible assets are stated at cost
less accumulated amortization. Intangible assets are amortized using the straight-line method over the estimated useful economic life
of3years.

Impairment of long-lived assets

The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash
flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be
impaired and written down to its fair value. There were no indicators of impairments of these assets as of December 31, 2024 and 2023.

Long-term investment

Equity investments without readily determinable
fair values

Equity investments without readily determinable
fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus
or minus changes resulting from qualifying observable price changes in accordance with ASC Topic 321, Investments - Equity Securities.

Equity method investments

For an investee company over which the Company
has the ability to exercise significant influence, but does not have a controlling interest, the Company accounted for those using the
equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of
the investee between20% and50%.

Under the equity method, the Company’s