Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 186

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 186
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transactions and loans the Company has entered into or penalty the Company is required to pay.

The ending balance of restricted cash presented
on the face of the consolidated balance sheets as of June 30, 2025 and 2024 were $8,425and $144,855, respectively.

Accounts receivable

Accounts receivable are recorded at the invoiced
amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy
of the allowance of expected credit loss on an ongoing basis, using historical collection trends and aging of receivables. The carrying
value of such receivable, net of the expected credit loss, represents its estimated realizable value. The Company expect to collect the
outstanding balance of current accounts receivable, net within one year.

The Company use CECL model and individual evaluation
method to estimate the allowance for credit losses. For those past due balances and other higher risk receivables identified by the Company
are reviewed individually for collectability. The Company evaluates the expected credit loss of accounts receivable based on historical
collection experience, the financial condition of its customers and assumptions for the future movement of different economic drivers
and how these drivers will affect each other. The Company writes off potentially uncollectible accounts receivable against the allowance
for credit losses if it is determined that the amounts will not be collected or if a settlement with respect to a disputed receivable
is reached for an amount that is less than the carrying value.

For the years ended June 30, 2025, 2024 and 2023,
the Company assessed the recoverability of its accounts receivable and record expected credit losses of $105,212, $288,662and Nil, respectively.

Advance to suppliers

Advance to suppliers refer to advances for purchase
of inventories or services, which are applied against accounts payable when the inventories or services are received.

The Company reviews a supplier’s credit
history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting
in an impairment of their ability to deliver goods or provide services, the Company would write off such amount in the period when it
is considered as impaired. The allowance for advances to suppliers recognized for the years ended June 30, 2025, 2024 and 2023 were Nil,
$222,721and Nil, respectively.

Loan receivables

Loan receivables represent amounts due from non-related