Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 199

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 199
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, or issuance date, if later. Potential ordinary
shares that have an anti-dilutive effect (i. e., those that increase income per share or decrease loss per share) are excluded from the
calculation of diluted EPS. There were no potentially dilutive ordinary shares for the year ended June 30, 2025. The potentially dilutive
ordinary shares for years ended June 30, 2024 and 2023 were55shares and14,815shares, respectively.

Comprehensive loss

ASC Topic 220 establishes standards for reporting
comprehensive income (loss) and its components. Comprehensive loss is defined as the change in equity during a period from transactions
and other events from non-owner sources. For the fiscal years ended June 30, 2025, 2024 and 2023, foreign currency translation loss adjustments
of $1,120,662, $62,877and $6,184,172, respectively, were recognized as a component of accumulated other comprehensive loss, respectively.

Foreign currency

Foreign currency translation

The Company’s principal country of operations
is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency.
The functional currency of the Company’s Hong Kong-based and the Cayman-based parent is the U. S. dollar. Transactions denominated
in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates
of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing
at the consolidated balance sheet date. Non-monetary assets and liabilities are translated using the historical rate on the date of the
transaction. All exchange gains or losses arising from translation of these foreign currency transactions are included as a separate component
of accumulated other comprehensive loss.

F-17

Foreign operations translation

In translating the financial statements of the
Company’s PRC subsidiaries from their functional currency into the Company’s reporting currency of United States dollars,
consolidated balance sheet accounts are translated using the closing exchange rate in effect at the balance sheet date and income and
expense accounts are translated using an average exchange rate prevailing during the reporting period. Adjustments resulting from the
translation, if any, are included in accumulated other comprehensive loss in shareholders’ equity. The Company has not, to the date
of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

The value of RMB against U. S. Dollar