Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 115

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 115
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 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 March 31, 2024 and 2023, provisions for warranty cost of $340 and $490 were recognized taking historical record into consideration.

Inventories, net

Inventories consist of raw materials and finished
goods and are stated at the lower of cost or net realizable value. The cost of inventories is calculated using the weighted average basis.
Cost of inventories sold is charged to cost of revenue, which also includes inbound freight cost and packaging fee. Adjustments are recorded
to write down the cost of inventories to the estimated net realizable value for slow-moving merchandises and damaged goods, which are
dependent upon factors such as historical and forecasted consumer demand, and other market conditions. The Company takes ownership, risks
and rewards of its inventories, and has sole discretion in establishing prices for goods to be sold. Write downs are recorded in cost
of revenue in the consolidated statements of income and comprehensive income. For the years ended March 31, 2024 and 2023, $19,212 and
$183 of impairment for inventories was recognized, respectively.

Impairment of long-lived assets

Long-lived assets are evaluated for impairment
periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance
with F