Company: LHI
Filing Date: 2025-02-14
Form Type: DRS/A
Source: 0001213900-25-014190
Chunk: 282

Company: Living Homeopathy International Ltd.
Filing Date: 2025-02-14
Form: DRS/A
Chunk 282
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 on the present value of the future minimum lease payments over the lease term at commencement date. As 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.

The Company follows the requirements of the
FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”.
Deferred offering costs consist of underwriting, legal and other expenses incurred through the balance sheet date that are directly related
to the intended initial public offering (“IPO”). Deferred offering costs will be charged to shareholders’ equity netted
against the proceeds upon the completion of the IPO. Should the IPO prove to be unsuccessful, these deferred costs, as well as additional
expenses to be incurred, will be charged to statements of operations. As of September 30, 2024 and March 31, 2024, the Company deferred
US$867,304 and nil of offering costs. Such costs will be deferred until the closing of the IPO, at which time the deferred costs will
be offset against the offering proceeds.

Non-current deposits
included security payments made to lessors for the Company’s entered lease agreements and refundable deposit to e-commerce platform.
The Company made such security payments upon the commencement of the original lease agreement. The rental deposits will be refunded to
the Company upon the termination or expiration of the lease agreements as well as the delivery of the vacant leased properties to the
lessors by the Company. Deposits to e-commerce platform will be refunded upon termination of service agreement with the platform. Deposits
are classified as non-current as they are not expected to be refunded within 12 months after the reporting period.

Bank borrowings are initially recognized at
fair value, net of upfront fees incurred. Borrowings are subsequently