Company: WELNF
Filing Date: 2025-11-12
Form Type: DEFM14A
Source: 0001104659-25-109577
Chunk: 613

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-11-12
Form: DEFM14A
Chunk 613
---
 of June 30, 2025, the allowance for credit loss was reduced by the bad debt recoveries and bad debts written off as explained in Note 5 with no additional allowance deemed necessary.

When allowance for credit losses is estimated, the amount is allocated as a contra account to accounts receivable indirectly adjusting it to its net realizable value and a bad debt expense is incurred. When the Company deems the collections of specific amounts are less likely, they are directly written off by a direct adjustment to accounts receivable and an incurrence of bad debt expense. When an accounts receivable balance previously written off is recovered, a gain is recognized as “Recovered bad debt” and included in other income in the period recovered.

Our allowances for credit losses reflect our best estimate of losses inherent in the trade accounts receivable balance. We determine the allowance based on known troubled accounts, weighing probabilities of future conditions and expected outcomes, and other currently available evidence. Economic forecasts, including inflation trends and interest rate projections, discretionary spending, and consumer behavior were considered but were determined to have an immaterial impact on the expected credit loss as of the adoption date and for the six month period ending June 30, 2025.

Inventory, net

ASC 330 “Inventory” requires entities to measure inventory at a lower of cost or net realizable value. The net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Inventory consists primarily of foods, groceries, furniture and homewares, and are stated at the lower of cost or net realizable value. 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.

Prepaid expense

The Company determines prepaid expenses when payments are advanced to third parties, usually vendors for services to be rendered or goods to be provided overtime or at a point in time. Portions of these advances (usually cash payments) that are allocated as the value for services or goods to be provided in the future are reported as a prepaid expense in the asset section of the consolidated balance sheet.

Deferred offering costs

Deferred offering costs consist of legal, accounting, and other third-party fees directly attributable to a planned equity offering. These costs are initially capitalized as current assets. Upon completion of the offering, the deferred costs are offset against the proceeds and recorded as a reduction to additional