Company: LHI
Filing Date: 2025-09-29
Form Type: F-1/A
Source: 0001213900-25-092499
Chunk: 121

Company: Living Homeopathy International Ltd.
Filing Date: 2025-09-29
Form: F-1/A
Chunk 121
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 or research and development services with us.

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Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires that we make estimates and assumptions. In certain circumstances, those estimates and assumptions can affect amounts reported in the accompanying consolidated financial statements and notes. In preparing our financial statements, we have made our best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable. Application of the accounting policies described below involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates. The following is a brief discussion of our critical accounting policies and estimates.

Revenue recognition

The Company accounts for revenue recognition under Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). Revenue from contracts with customers is recognized using the following five steps:

| 1. | Identify                         
 the contract(s) 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 primarily generates revenue from
sales of healthcare products, personal care products and water filters and related products to individuals and distributors. The Company
recognizes revenue when payment is tendered at the point of sale as the performance obligation has been satisfied. The single performance
obligation is satisfied at a point in time when the product has been delivered to the customer and control has been passed to the customer,
no obligation is outstanding, and the Company is reasonably assured that funds have been or will be collected from the customer, i.e.,
customers settled the amount by cash or credit card. Product acceptance is evidenced by sales invoice signed by the customer upon checkout
in the Company’s office. The transaction price is determined based on a fixed consideration in the contract with customers. There
is no variable consideration, significant financing components or noncash consideration in the contracts with customers. The transaction
price is clearly identifiable on the price list and revenue is recognized net of discounts. The Company generally does not offer return
in exchange for cash or credit. The Company