Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 122

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 122
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 are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due
after 30 to 90 days, depending on the credit term with its customers. Management reviews the adequacy of the allowance for credit losses
on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s
financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary.
On January 1, 2023, the Company adopted the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments - Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for
the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology.

EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, unless stated otherwise)

The
Company used a modified retrospective approach and the adoption does not have an impact on the Company’s consolidated financial
statements. The Company’s accounts receivable and other receivables are within the scope of ASC Topic 326. To estimate expected
credit losses, the Company has identified the relevant risk characteristics of the receivables which include size and nature. Receivables
with similar risk characteristics have been grouped into pools. For each pool, the Company considers the past collection experience,
current economic conditions and future economic conditions (external data and macroeconomic factors). This is assessed at each quarter
based on the Company’s specific facts and circumstances. There have been no significant changes in the assumptions since adoption.
Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery
is considered remote. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update
it if necessary. Allowance for credit losses amounted to $ 2,420 2,504

Inventories

Inventories
consist of finished goods and are stated at the lower of cost or net realizable value using the moving
average unit cost method. Management reviews inventory on hand periodically for estimated obsolescence
or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based