Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 94

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 4A
Chunk 94
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 installation and maintenance revenue and senior care services revenue into the sales of
the E-watch and the care service. Sales of household appliance accessories and E-watches are recognized in revenue at a point in time,
while revenue from care services is recognized over a period.

Educational consulting services

We also generate revenues from providing educational
consulting services to customers. Revenues from educational consulting services are recognized at the time upon completion of services
to the customer based on the relative selling price method. We consider whether the nature of our promise is a performance obligation
to provide the specified goods or services ourselves (that is, the entity is a principal) or to arrange for the other party to provide
those goods or services (that is, the entity is an agent). We determine that we are a principal and recognize revenues at the gross amount
received for the services.

Sales of pharmaceutical products

We also generated revenues from sales of pharmaceutical
products to its customers, which are mainly pharmaceutical stores in PRC. Under the adoption of ASC 606, we recognized revenues in a manner
to depict the transfer of goods to a customer at an amount that reflects the consideration expected to be received in exchange for those
goods. We consider revenue realized or realizable and earned when all the five following criteria are met: (1) identify the contract with
a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction
price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

We consider customer purchase orders to be the
contracts with a customer. As part of its consideration of the contract, we evaluate certain factors, including the customer’s ability
to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, to be the identified
performance obligations. We consider whether the nature of its promise is a performance obligation to provide the specified goods ourselves
(that is, the entity is a principal) or to arrange for the other party to provide those goods (that is, the entity is an agent). We determine
that we are a principal and recognize revenues at the gross amount received for the goods. We control the specified good before that good
is transferred to its customers based on the following indicators: (1) we are primarily responsible for fulfilling the promise to provide
the specified good, (2) we bear the inventory risk before or after (i