Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 172

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 172
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 5,377,195  
  Inventory reserve                                                    288,014                            233,069  
  Allowance for credit losses                                          189,473                            282,295  
  Valuation allowance on net operating loss                        ( 7,230,751                        ( 5,377,195  
  Total                                          $                     477,487      $                     515,364  

On December 31, 2024, the Company has provided
full valuation allowance on deferred tax assets for net operating loss that the Company estimated unrealizable in the foreseeable future
due to expected future operating loss in certain entities. As of December 31, 2024 and 2023, the valuation allowance was $7,230,751and
$5,377,195, respectively. The Company’s management reviews this valuation allowance periodically and makes adjustments as necessary.

Taxes Payable

The Company’s taxes payable consists of
the following:

                           December 31,                  December 31,              
  VAT tax payable          $                 15,579      $                  9,407  
  Income tax payable                              -                         2,623  
  Other taxes payable                        55,583                        46,203  
  Total                    $                 71,162      $                 58,233  

Note 16 - Segment reporting

ASC 280, “ Segment Reporting”, establishes
standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure
as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s
business segments. The Company uses the “management approach” in determining reportable operating segments. The management
approach considers the internal organization and reporting used by the Company’s chief operating decision maker, i. e., the Chief
Executive Officer, for making operating decisions and assessing performance as the source for determining the Company’s reportable
segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products or
services. Based on management’s assessment, the Company has determined that it has onlyoneoperating segment.

The significant segment expenses are consistent
with those reported on the consolidated financial statements of operations and comprehensive loss and include cost of revenues, fulfillment
expenses, marketing expenses and general and administrative expenses. For significant segment expenses incurred during the years ended
December 31, 2024, 2023 and 2022, refer to Consolidated Statements of Operations and Comprehensive Loss.

The