Company: LHI
Filing Date: 2025-08-08
Form Type: F-1/A
Source: 0001213900-25-073646
Chunk: 247

Company: Living Homeopathy International Ltd.
Filing Date: 2025-08-08
Form: F-1/A
Chunk 247
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 and $340, respectively,
were recognized in “Cost of revenue” in the consolidated statements of income and comprehensive income, taking historical
record into consideration.

Cost of revenue includes cost of inventories
using weighted average method, inbound freight cost and packaging cost. If available, impairment of inventories is also recorded in the
cost of revenue.

Selling and marketing expenses primarily include
sales commission paid to salesperson, advertising expenses and other marketing and promotion related expenses.

Staff costs and employee benefits mainly consisted
of salaries and employee benefits paid and payable to the employees of the Company.

<div align='center'>F-12</div>

Payments to the Mandatory Provident Fund Scheme
(“MPF scheme”) under the Hong Kong Mandatory Provident Fund Schemes Ordinance are recognized as an expense when employees
have rendered service entitling them to the contributions. An employer is required to make regular mandatory contributions of at least
5% of the employee’s monthly income and HKD1,500(US$192) of the employee’s monthly income over HKD30,000(US$3,850).

During the years ended March 31, 2025 and
2024, the total amount charged to the consolidated statements of income and comprehensive income in respect of the Company’s costs
incurred on the MPF scheme were approximately $19,614 and $20,819, respectively.

Legal and professional fees include legal fees, audit fees and
other professional services fees.

Other general and administrative expenses
mainly consist of repair and maintenance, consumables, system fees, travelling, property related expenses,
office expenses and other miscellaneous administrative expenses.

Interest income is mainly generated from savings
and time deposits which are less than one year, and is recognized on an accrual basis using the effective interest method. Interest income
is received from banks on a monthly basis.

Government subsidies are recognized as income
in other income, net or as a reduction of specific costs and expenses for which the subsidies are intended to compensate. Such amounts
are recognized in the consolidated statements of income and comprehensive income upon receipt and when all conditions attached to the
grants, such as companies are required to stay in the same level of employment, are fulfilled. Such subsidies are presented under other
income. During the years ended March 31, 2025 and 2024, the Company recognized government subsidy of $39,330 and nil, respectively, in
the other income of consolidated statements of income and comprehensive income.

Other income mainly consists of anniversary