Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 196

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 196
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 the customers’ needs. The Company did not sell these household appliance accessories separately. The senior care services consist
of the sale of E-watch and the care services. The E-watch cannot be sold to the customers solely without the care services, and the care
services should be rendered by the E-watch. Consequently, the Company regards these operating activities as operating in one material
segment, being the revenue of senior care services.

Based on the above discussion, the Company disaggregated
sales of household appliance accessories from 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 service is recognized over a period.

F-15

Educational consulting services

The Company also generates revenues from providing
educational consulting services to its customers. Revenues from educational consulting services are recognized at a point in time upon
completion of services to the customer based on the relative selling price method. The Company considers whether the nature of its promise
is a performance obligation to provide the specified goods or services itself (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). The Company determines it is a principal and recognizes
revenues at the gross amount received for the services.

Sales of pharmaceutical products

The Company also generates revenues from sales
of pharmaceutical products to its customers, which are mainly pharmaceutical stores in PRC. The business has been discontinued since November 2024, as the Company
disposed of its subsidiary Zhongrun. Under the adoption of ASC 606, the Company
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. The Company considers 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.

The Company considers customer purchase orders
to be the contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the
customer’s ability to pay (or credit risk). For each contract,