Company: LHI
Filing Date: 2025-02-14
Form Type: DRS/A
Source: 0001213900-25-014190
Chunk: 284

Company: Living Homeopathy International Ltd.
Filing Date: 2025-02-14
Form: DRS/A
Chunk 284
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 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 offers returns in exchange for a product replacement within 7 days from the date of sales
in case of product defects. The Company determines that such a product warranty is not a separated performance obligation because the
nature of warranty is to provide assurance that a product will function as expected and in accordance with the customer’s specification
and the Company does not sell the warranty separately. As of September 30, 2024 and March 31, 2024, provisions for warranty cost of $340
and $340 were recognized taking historical record into consideration.

Cost of revenue includes cost of inventories
using weighted average method, inbound freight cost and packaging cost. If available, impairment of inventories is also recorded in the
cost of revenue.

Selling and marketing expenses primarily include
sales commission paid to salesperson, advertising expenses and other marketing and promotion related expenses.

Staff costs and employee benefits mainly consisted
of salaries and employee benefits paid and payable to the employees of the Company.

<div align='center'>F-34</div>

Payments to the Mandatory Provident Fund Scheme
(“MPF scheme”) under the Hong Kong Mandatory Provident Fund Schemes Ordinance are recognized as an expense when employees
have rendered service entitling them to the contributions. An employer is required to make regular mandatory contributions of at least
5% of the employee’s monthly income and HKD1,500(US$193) of the employee’s monthly income over HKD30,000(US$3,861).

During the six months ended September 30,
202