Company: JWEL
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041556
Chunk: 88

Company: Jowell Global Ltd.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 4A
Chunk 88
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2027. However, the Board acknowledges that there
was ambiguity between the intent in the basis for conclusions in Update 2024-03 and the transition guidance that was included in the Codification
when Update 2024-03 was issued.

The Company has evaluated pronouncements recently issued but not yet
adopted. The adoption of these pronouncements is not expected to have a material impact on the Company’s consolidated financial
statements.

5B. Liquidity and Capital Resources

Liquidity and Capital Resources

We are a holding company incorporated in the Cayman Islands. We conduct
our operations primarily through the consolidated VIE and its subsidiaries in China. As a result, our ability to pay dividends depends
upon service fee paid by Shanghai Juhao. If Shanghai Juhao incurs debt on its behalf in the future, the instruments governing its debt
may restrict its ability to pay service fee to us. In addition, Shanghai Juhao is permitted to pay service fee to us only out of its retained
earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, Shanghai Juhao is required
to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds
reach 50% of its registered capital. Additionally, Shanghai Juhao may allocate a portion of its after-tax profits based on PRC accounting
standards to its enterprise expansion fund and staff bonus and welfare funds, at its discretion. Shanghai Juhao may also allocate a portion
of its after-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds
and the discretionary funds are not distributable as cash dividends.

For the year ended December 31, 2024, we reported
a net loss of $8.0 million and operating cash inflow of $790 thousand, which were primarily due to the negative impact of economic downturn
on our business and operation.

The consolidated financial statements have been
prepared assuming the Company will continue as a going concern. As discussed in Note 3 to the financial statements, during the financial
year ended December 31, 2024, the Company incurred a net loss of $8,002,644, and as of December 31, 2024, its accumulated deficit was
$34,003,726. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company