Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 145

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 145
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date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease
exemption for the lease terms that are 12 months or less.

At inception of a contract,
the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control
the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease,
the Company assesses whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all
the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets
and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line
basis over the lease term and had no finance leases for any of the periods stated herein.

The right-of-use of asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and less any lease incentive received. All right-of-use assets are reviewed
for impairment annually. There was no impairment for right-of-use lease assets as of December 31, 2024 and 2023.

Revenue recognition

The Company through its websites mainly www.1juhao. com
and mobile applications, engages primarily in online sale of personal care products, nutritional supplements and general merchandise products
sourced from manufacturers and distributors in China, and also offers an online marketplace that enables third-party sellers to sell their
products to the Company’s consumers. Customers place their orders for products or services online primarily through the Company’s
websites and mobile applications. Payment for the purchased products or services is generally made either before delivery or upon delivery.

Consistent with the criteria of ASC 606, the Company
recognizes revenues when the Company satisfies a performance obligation by transferring a promised goods or services to a customer. Goods
(represent “ Cosmetic products Health and nutritional supplements and Household products”) are transferred when the customer
obtains control of it, which generally occurs upon the delivery of the products to customers. Service (represent “others”)
is recognized ratably over the contract period.

F-14

In accordance with ASC 606, the Company evaluates
whether it is appropriate to record the gross amount of