Company: WELNF
Filing Date: 2025-11-12
Form Type: DEFM14A
Source: 0001104659-25-109577
Chunk: 428

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-11-12
Form: DEFM14A
Chunk 428
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 determine loss rates for different segments of our customer base. This includes reviewing past due accounts, write-offs, and recoveries.

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Current Conditions: We consider current economic conditions and their potential impact on our customers’ ability to pay. Factors such as changes in the economic environment, customer base, and payment patterns are taken into account.

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Reasonable and Supportable Forecasts: We incorporate forward-looking information into our estimates, which involves assessing macroeconomic indicators such as GDP growth, unemployment rates, and other relevant factors that could impact credit risk.

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Customer Creditworthiness: We evaluate the creditworthiness of our customers using various metrics, including credit scores, financial health indicators, and payment history. This helps us to identify high-risk accounts and adjust our allowance accordingly.

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Aging of Receivables: We perform an aging analysis of our accounts receivable to identify and assess the likelihood of collection for accounts that are past due. Older receivables generally carry a higher risk of default and therefore require a higher allowance.

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Industry Trends: We consider industry-specific trends and developments that could affect the collectability of our receivables. For example, changes in consumer behavior, regulatory changes, and technological advancements in the e-commerce sector are monitored.

The allowance for doubtful accounts is reviewed and updated on a regular basis to reflect new information and changes in conditions. Any adjustments to the allowance are recorded in our financial statements and impact our net income.

#### Judgments and Estimates
The process of estimating the allowance for doubtful accounts requires significant judgment, particularly in determining the reasonable and supportable forecasts and assessing the impact of current economic conditions. Changes in these estimates can materially affect our financial statements.

For example, an unexpected economic downturn could lead to a higher number of defaults than anticipated, requiring an increase in the allowance. Conversely, improvements in the economic environment could result in lower credit losses.

We continually monitor the accuracy of our estimates by comparing actual write-offs to our previous estimates and adjusting our models as necessary. Although we believe our allowance for doubtful accounts is reasonable, actual results could differ from our estimates, which could have a material impact on our financial results.

#### Inventory
ASC 330 “Inventory” requires entities to measure inventory at a lower of cost or market. The market value is determined by its net realizable value. The net realizable value is the estimated selling price in the

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ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Inventory consists primarily of foods