Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 89

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 89
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’s
ability to continue as a going concern.

Presently, the Company’s principal source
of liquidity are its revenues, proceeds from its public offering and private placements. As of December 31, 2024, the Company had cash
of approximately $2.2 million and working capital of $10.2 million. $2.1 million of the cash were held by the VIE with
banks and financial institutions inside China as the Company conducted its operations primarily through the consolidated VIE in China.
With the uncertainty of the current market, the management believes it is necessary to enhance the collection of the outstanding balance
of accounts receivable and other receivables, and to be cautious on operational decisions and project selections. As of March 31, 2025,
approximately $704 thousand, or 28%, of its accounts receivable balance as of December 31, 2024 were collected, and approximately
$2.9 million or 76% of its advances to supplier balance as of December 31, 2024 were utilized.

Based on our current operating plan, we believe that the above-mentioned
measures, including cash on hand of approximately $2.1 million and bank borrowing, will collectively provide sufficient liquidity for
the Company to meet its future liquidity and capital requirements for at least the next twelve months from the date the Company’s consolidated
financial statements are issued.

The following table sets forth summary of our cash flows for 2024,
2023 and 2022:

                                                            For the Years                                            
                                                            Ended December 31,                                       
                                                            2024                                                     
                                                            (in thousands)                                           
  Net cash provided by (used in) operating activities       $                         790      (13,492      (11,993  
  Net cash used in investing activities                                               124          (42       (1,338  
  Net cash provided by (used in) financing activities                                 (18       (1,633        9,938  
  Effect of exchange rate change on cash                                              286         (301       (1,139  
  Net increase (decrease) in cash and cash equivalents                                934      (15,468       (4,532  
  Cash and restricted cash, beginning of the year                                   1,250       16,718       21,250  
  Cash and restricted cash, end of the year                                         2,184        1,250       16,718  

5C. Research and Development, Patents and Lic