Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 193

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 193
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 instruments and
market rates of interest.

ASC 820 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes
the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of
unobservable inputs. The three levels of inputs used to measure fair value are as follows:

  Level 1 –      Quoted prices in active markets for identical assets and liabilities.  

  Level 2 –      Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full ter...  

  Level 3 –      Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted...  

The Company considers the carrying amount of its
financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable and accounts payable to approximate
the fair value of the respective assets and liabilities as of June 30, 2025 and 2024 owing to their short-term or immediate nature. The
carrying amounts of the long-term receivables and payables approximate their fair value as the interest rates are comparable to the prevailing
interest rates in the market. For operating lease liabilities, fair value approximates their carrying value at the year-end as the fair
value is estimated by used discounted cash flow, in which incremental borrowing rates used to discount the host contracts approximate
market rates. For the years ended June 30, 2025, 2024 and 2023, there were no transfers between different levels of inputs used to measure
fair value.

Revenue recognition

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, pursuant which revenue is recognized when control of the promised goods or
services is transferred to the customer, in an amount that reflects the consideration the Company expects to receive in exchange for those
goods or services.

The Company generates revenues primarily from
installation & maintenance services, housekeeping services, senior care services, sales of household appliance accessories and sales
of E-watches. The Company sells its goods and services through a third-party service provider, WeChat platform. The Company’s revenues
are subject to value