Company: NIVFW
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001213900-25-033966
Chunk: 162

Company: NewGenIvf Group Ltd
Filing Date: 2025-04-22
Form: 20-F
Item: Item 19
Chunk 162
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les model.

Debt issuance and offering
costs are amortized over the contractual term of the Convertible Notes, to the consolidated statements of operations in accordance with
ASC 835-30-45-1A.

The convertible notes are
subsequently recorded at amortized cost, with interest expense recognized using the effective interest method. The derivative liability,
if any is remeasured at fair value at each reporting date and any gain or loss on fair value is recognized in the statement of comprehensive
income.

Promissory Notes

Promissory notes, originated from ASCA’s transaction and being
taken over by NewGenIVF Group Limited upon merger, are of non-interest bearing and recorded at original cost. They are subsequently measured
at amortised cost, with interest expense recognized using the effective interest method in the consolidated statement of income.

F-13

Ordinary shares

The Company’s ordinary
shares are stated at no par value. The difference between the consideration received, net of issuance cost, is recorded in additional
paid-in capital.

On January 21, 2025, the
Board of Directors of the Company approved a reverse stock split of all of the Company’s issued and unissued shares, including the
Class A ordinary shares with no par value (the “ Class A Ordinary Shares”), Class B ordinary shares with no par value and preferred
shares with no par value, at an exchange ratio of one (1) share for twenty (20) shares (the “ Reverse Stock Split”). Upon the
opening of the market on February 11, 2025, the Company’s Class A Ordinary Shares will begin trading on the Nasdaq Global Market
(“ Nasdaq”) on a post-Reverse Stock Split basis.

In accordance with ASC 505,
the reverse stock split is to be accounted for retrospectively.

Revenue recognition

The Company adopted ASC Topic 606,
Revenue from Contracts with Customers, and all subsequent ASUs that modified ASC 606 on April 1, 2017 using the full retrospective
method which requires the Company to present the financial statements for all periods as if Topic 606 had been applied to all prior
periods. The Company derives revenue principally from provision of In vitro fertilization (“ IVF”) treatment and surrogacy
and ancillary caring services. Revenue from contracts with customers is recognized using the following five steps:

  (1)      identify its contracts with customers;                                                                                                                                                                
  (2)      identify its performance obligations under those contracts;                                                                                                                                           
  (