Company: WELNF
Filing Date: 2025-11-12
Form Type: DEFM14A
Source: 0001104659-25-109577
Chunk: 429

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-11-12
Form: DEFM14A
Chunk 429
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, groceries, furniture and homewares, and are stated at the lower of cost or net realizable value.

#### Inventory Valuation
The Company’s inventory uses the first-in-first-out costing method. Obsolete, damaged, or expired inventories are written off as a loss. An inventory reserve may be allocated to account for potential loss of inventory that could occur in the normal course of business.

The valuation of inventory involves significant judgment and estimates, particularly regarding the following factors:

Net Realizable Value (NRV): NRV is the estimated selling price in the ordinary course of business, less estimated costs of completion and disposal. This requires us to make judgments about future demand, pricing, and market conditions. Changes in these estimates can significantly impact the value of our inventory. For example, if market conditions deteriorate, we may need to write down the value of inventory to reflect lower NRV.

Obsolescence: We regularly review our inventory for obsolescence and excess quantities. Products that are no longer in demand or have become outdated due to technological advancements or changes in consumer preferences are written down to their NRV. Estimating obsolescence involves assessing product lifecycles, historical sales data, and current market trends.

Damaged and Returned Goods: Inventory includes items that may be returned by customers or damaged during storage and handling. We estimate the impact of such returns and damages on the value of our inventory based on historical return rates and current conditions. Significant changes in return rates or damage levels could necessitate adjustments to our inventory valuation.

Economic Conditions: Broader economic factors, such as inflation, changes in consumer spending, and global supply chain disruptions, can affect inventory valuation. We monitor these conditions closely and adjust our estimates as necessary to reflect their impact on our inventory’s NRV.

#### Judgments and Estimates
The estimation of inventory valuation requires significant judgment, especially in determining NRV and identifying obsolete or excess inventory. Changes in these estimates can materially affect our financial statements. For example, an overestimation of future demand may result in excess inventory, requiring a write- down to NRV, while underestimating demand could lead to stockouts and lost sales.

We continually review our inventory management processes and update our estimates based on new information and market conditions. Although we believe our estimates are reasonable, actual results could differ from these estimates, which could have a material impact on our financial results.

### Sensitivity Analysis
**To illustrate the potential impact of changes in our estimates, a 1% increase in our inventory valuation allowance as of