Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 143

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 143
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 share
of the post-acquisition profits or losses of the equity investment is recognized in the consolidated statements of operations and comprehensive
income; and the Company’s share of post-acquisition movements in equity is recognized in equity in the consolidated balance
sheets. Unrealized gains on transactions between the Company and an entity in which it has recorded an equity investment are eliminated
to the extent of the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized
losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share
of losses in an entity in which it has recorded an equity investment equals or exceeds the Company’s interest in the entity, it
does not recognize further losses, unless it has incurred obligations or made payments on behalf of the equity investee.

The Company evaluates the equity method investments
for impairment. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined
to be other-than-temporary.

Fair value of financial instruments

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. ASC Topic 820 specifies a hierarchy of valuation
techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

  Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.  

  Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that ar...  

  Level 3 - inputs to the valuation methodology are unobservable.  

Unless otherwise disclosed, the fair value of
the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, short-term loan,
due to related parties, accounts payable, trade notes payable, contract liabilities, taxes payable, and accrued expenses and other current
liabilities approximate their recorded values due to their short-term maturities.

F-13

Share-Based compensation

The Company follows the provisions of ASC 718,
“ Compensation - Stock Compensation,” which share-based compensation cost is measured at the grant date based on the fair value
of the award and is recognized as expense over the requisite service period for the entire award.

Leases

On