Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 198

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 198
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or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized
in profit or loss in the period in which they become receivable. Government subsidies are recognized when received and all the conditions
for their receipt have been met.

For the years ended June 30, 2025, 2024 and 2023,
the Company received government subsidies of $338, $14,035, and $86,120, respectively. The grants were recorded as other income in the
consolidated financial statements.

F-16

Income taxes

Income taxes are provided on an asset and liability
approach for financial accounting and reporting of income taxes. Any PRC tax paid by subsidiaries during the year is recorded. Deferred
income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based
upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the
amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred tax asset will not be
realized.

Ordinary shares

The Company accounts for repurchased ordinary
shares under the cost method and includes such treasury stock as a component of the common shareholders’ equity. Cancellation of
treasury stock is recorded as a reduction of ordinary shares, additional paid-in capital and retained earnings, as applicable. An excess
of purchase price over par value is allocated to additional paid-in capital first with any remaining excess charged entirely to retained
earnings.

Related parties

Parties are considered to be related if one party
has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial
and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such
as a family member or relative, shareholder, or a related corporation.

Earnings per share

The Company computes earnings per share (“ EPS”)
in accordance with ASC 260, “ Earnings per Share”. ASC 260 requires companies with complex capital structures to present basic
and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted
EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e. g., convertible securities,
options and warrants) as if they had been converted at the beginning of the periods presented