Company: LHI
Filing Date: 2025-09-29
Form Type: F-1/A
Source: 0001213900-25-092499
Chunk: 123

Company: Living Homeopathy International Ltd.
Filing Date: 2025-09-29
Form: F-1/A
Chunk 123
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ments
of these assets as of March 31, 2025 and 2024.

Leases

The Company utilizes ASC 842 to account for leases for all periods presented.

The Company determines if an arrangement is a lease at inception. On the Company’s consolidated balance sheets, right-of-use (“ROU”) assets, current portion of lease liabilities, and non-current portion of lease liabilities are accounted.

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ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. Any lease with a term of 12 months or less is considered short-term.

Quantitative and Qualitative Disclosures about Market Risks

Credit risk

Our assets that are potentially subject to a significant concentration of credit risk mainly consist of cash and cash equivalents and other receivable and other current assets.

The Company believes that there is no significant credit risk associated
with cash in Hong Kong, which were held by reputable financial institutions in the jurisdiction where Living Homeopathy Hong Kong is located.
As of March 31, 2025 and 2024, the Hong Kong Deposit Protection Board pays compensation up to a limit of HKD800,000 (approximately $63,890)
and HKD500,000 (approximately $63,890), respectively, if a bank, which an individual/a company deposits with, fails. As of March 31, 2025
and 2024, cash balance of $2,441,802 and $2,494,226 was maintained at financial institutions in Hong Kong and approximately $113,059 and
$74,498 was insured by the Hong Kong Deposit Protection Board, respectively.

Other receivable and other current assets are subject to credit evaluations. An allowance, where applicable, is made for estimated unrecover