Company: NIVFW
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001213900-25-033966
Chunk: 89

Company: NewGenIvf Group Ltd
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 89
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, are recorded at fair
value of the shares issued, determined based on the market price of the shares at the date of issuance. The fair market value of the shares
is recorded as APICs (since we do not have par value), and APIC - deferred cost of financing, both of which are presented in the
Statement of Equity. The APIC - deferred financing cost is amortised over the term of the facility and credited into APIC. There
is no impact nevertheless on the total equity of the Company and for purposes of presentation in the Statement of Equity, APIC and APIC
 - deferred financing cost are not segregated.

Principles of consolidation and basis of preparation

The accompanying consolidated
financial statements reflect the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. All
inter-company balances and transactions have been eliminated in consolidation.

The business combination
transaction between Legacy NewGenIvf and SPAC I was accounted for as a reverse recapitalization under ASC 805, Business Combinations,
with NewGenIvf Group Limited, and deemed to be the accounting acquirer. As SPAC I did not meet the definition of a business under ASC
805, the transaction was not treated as a business combination. Instead, it was accounted for as a recapitalization.

Accordingly, the consolidated assets, liabilities and results of operations
of the accounting acquirer will become the historical financial statements of the Company, and the accounting acquirer’s assets,
liabilities and results of operations will be consolidated with the Company beginning on the acquisition date. The Legacy NewGenIvf was
the legal acquiree but deemed to be the accounting acquirer. The Company was the legal acquirer but deemed to be the accounting acquiree
in the reverse merger. The historical financial statements prior to the acquisition are those of the accounting acquirer (Legacy NewGenivf).
After completion of the Merger Transaction, the Company’s consolidated financial statements include the assets and liabilities,
the operations and cash flow of the accounting acquirer. Any excess of the value of shares issued by the Company over the net book value
of the accounting acquirer will be recognized as a reduction to equity (APIC).

Revenue recognition

The Company adopted ASC Topic 606, Revenue from Contracts with
Customers. 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:

  (