Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 80

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 80
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 by $2.4 million, or 41.8%, in 2023. The decrease was primarily due to a $1.7 million decrease in
share-based compensation of services provided by employees and a $0.3 million decrease in consulting fees, offset by a $1.1 million
increase in allowance for credit losses as a result of long aging and low collectability.

Loss from Operations

  For the Year Ended December 31,                                                                                  
  2023                                                                           2022                              
  Amount                                                  % of                   Amount                   % of     
                                                          revenue                                         revenue  
  (in thousands, except for percentage)                                                                            
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Loss from Operations $                     (10,891                   (6.8      $           (12,041               

Loss from operations in 2023 was
approximately $10.9 million compared to loss from operations of about $12.0 million in 2022. The decrease in loss from operations is
mainly due to our efforts to reduce expenses including a decease in marketing expenses and in general and administrative expenses,
which has decreased our loss from operation.

Loss Before Income Taxes

Loss before income taxes is about $11.4 million
in 2023 as compared to loss before income taxes of about $12.0 million in 2022. The decrease in loss before income taxes is primarily
due to the loss from operations of $10.9 million and investment loss on the investment in Suzhou Industrial Park Hongrun Rural Small Amount
Loan Co., Ltd of $0.45 million.

Income Taxes Benefit

Our income taxes expense was approximately $135
thousand in 2023 as compared to income taxes benefit of about $420 thousand in 2022. The effective income tax rate was 1.0% and 3.5% in
2023 and 2022, respectively. The significant decrease in effective income tax rate is mainly due to less accrual of the realizable deferred
tax assets in 2023 with the reversal of inventory impairment.

Net Loss

As a result of the foregoing, we had a net
loss of $11.5 million in 2023, compared to net loss of $11.5 million in 2022.

Other Comprehensive Income(loss)

Foreign currency translation adjustments amounted to a loss of $0.9
million for 2023 when compared to $2.4 million in 2022, respectively. The