Company: LHI
Filing Date: 2025-11-20
Form Type: F-1/A
Source: 0001213900-25-112807
Chunk: 36

Company: Living Homeopathy International Ltd.
Filing Date: 2025-11-20
Form: F-1/A
Chunk 36
---
 could be subject to regulatory or enforcement actions, including the issuance of a warning or untitled letter, injunction, seizure, civil fine or criminal liabilities. It is also possible that regulatory authorities might take action if they consider our promotional statements and materials, labeling, product packaging, websites or promotional practices to constitute false or misleading description of products, which could result in significant fines or liabilities under other statutory authorities. If any of these events occur, our reputation could be damaged and adoption of our products could be impaired and our business, financial condition and results of operations may be materially and adversely affected.

If our competitors alleging that our promotional materials do not comply with applicable laws and regulations, we cannot predict the impact that any future allegations could have on us, including whether such allegations will be made to the regulatory authorities and what actions, if any, the regulatory authorities will take as a result.

<div align='center'>19</div>

We
also face the risk that our employees and mentor and mentees, including the practitioners
who are homeopath or nutritional therapy practitioner engage in aggressive or improper marketing
or promotion of our products, outside the confines of our promotional materials or training
programs. While we have agreements governing our relationship with our employees, we cannot
rule out the possibilities of employee misconducts. Other than our full employees who are
participants of the mentor-mentee programs, the remaining large number of mentors and mentees,
including those who are homeopath and nutritional therapy practitioners, are not our employees,
and we do not have written agreements with them. With respective to mentors and mentees,
although we have written code of conduct, we can control only certain aspects of their activities
and our supervisions over their behaviors and conducts can be constrained given the large
number of mentors and mentees enrolled into our mentor-mentee program. Nevertheless, we are
responsible for ensuring that each of our employees and mentors and mentees acts in accordance
with applicable laws. Our reliance on these individuals does not relieve us of our legal
and regulatory responsibilities. Any failure by our employees and participants of our mentor-mentee
program to comply with applicable laws could lead to regulatory action, could damage our
reputation and could materially and adversely affect our business, financial condition and
results of operations.

The sustainability of our mentor and mentee program relies on mentors and mentees’ strict compliance with, and our effective enforcement of, our written marketing manual governing the mentor and mentee’s rights and obligations, qualification, conducts, and other, as well