Company: EJH
Filing Date: 2025-10-30
Form Type: 20-F
Source: 0001213900-25-104179
Chunk: 185

Company: E-Home Household Service Holdings Ltd
Filing Date: 2025-10-30
Form: 20-F
Item: Item 19
Chunk 185
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 a component of an entity that has been disposed of or is classified as held for sale and represents
a separate major line of business or geographical area of operations, or is part of a single coordinated plan to dispose of such a line
of business or area of operations, and for which the operations and cash flows can be clearly distinguished from the rest of the Company.

Upon meeting the criteria for discontinued operations,
the results of operations of the component, including any gain or loss recognized on the disposal, are presented separately, net of income
taxes, from continuing operations in the consolidated statements of operations for all periods presented. Assets and liabilities of a
component classified as held for sale are presented separately in the consolidated balance sheets.

Prior-period financial statements are reclassified
to conform to the current presentation when a component of the business is reported as a discontinued operation.

Use of estimates

The preparation of financial statements in conformity
with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures
of contingent assets and liabilities on the date of the financial statements, and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions
using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. In accordance
with ASC 250, the changes in estimates will be recognized in the same period of changes in facts and circumstances. The Company bases
its estimates on past experiences and on various other assumptions that are believed to be reasonable, the results of which form the basis
for making judgments about the carrying values of assets and liabilities. Estimates are used when accounting for items and matters including,
but not limited to, revenue recognition, the allowance for credit losses, estimated useful lives of fixed assets, intangible assets and
operating lease right-of-use assets, and accruals for income tax uncertainties.

Cash and cash equivalents

Cash and cash equivalents include cash on hand,
cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased.
The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase
to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured
by the Federal Deposit Insurance Corporation or other programs.

F-9

Restricted cash

Restricted cash is cash held as collateral