Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 216

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 216
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 of reverse stock splits on September 23, 2022, April 13, 2023, September 25, 2023, February 14, 2024 and September          
  24, 2024).                                                                                                                                      
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  Lender has the right at any                                                                                                                    

F-26

In accounting for the issuance of the Convertible
Note 2021, the Company separated the Convertible Note into liability and equity components. The carrying amount of the equity component
of the Convertible Note 2021 and the warrants was $1,304,565(equity component $1,092,460, warrants value $212,105). Equity component
was determined by deducting the fair value of the liability component from the par value of the original Convertible Note 2021. Warrants
value was determined with the Black Scholes model. Equity component is not remeasured as long as it continues to meet the conditions for
equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”)
is amortized to interest expense over the term of the Convertible Note 2021.

Debt issuance costs related to the original Convertible
Note 2021 comprised of commissions paid to third party placement agent, lawyers, and warrants value of $880,025. The Company allocated
the total amount incurred to the liability and equity components of the original Convertible Note 2021 based on their relative values.
Issuance costs attributable to the liability component were $697,771 and will be amortized to interest expense using the effective interest
method over the contractual term. Issuance costs attributable to the equity component were $182,255 and netted with the equity component
in stockholders’ equity of $1,092,460 and warrant value of $212,105.

For the year ended June 30, 2022, the Company
issued739,453ordinary shares (7ordinary shares retrospectively restated for effect of reverse stock splits on September 23, 2022,
April 13, 2023, September 25, 2023, February 14, 2024 and September 24, 2024) with a fair value of $200,000for principal and interest
partial settlement of the Convertible Note 2021.

For the year ended June 30, 202