Company: LHI
Filing Date: 2025-09-29
Form Type: F-1/A
Source: 0001213900-25-092499
Chunk: 246

Company: Living Homeopathy International Ltd.
Filing Date: 2025-09-29
Form: F-1/A
Chunk 246
---
 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 measured at amortized cost. Any difference between the proceeds
(net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective
interest method.

Accounts payable represent trade payables
to vendors.

Accrued expenses and other payables primarily
include accrued salaries, accrued professional fees, commission payables and other accrued expenses for the operation in the ordinary
course of business.

ASC 820 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. ASC 820 specifies a hierarchy of valuation
techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

| ● | Level                                                                                
 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical 
 assets or liabilities in active markets.                                             |

| ● | Level                                                                                          
 2 – inputs to the valuation methodology include quoted prices for similar assets and           
 liabilities in active markets, quoted market prices for identical or similar assets in markets 
 that are not active, inputs other than quoted prices that are observable and inputs derived    
 from or corroborated by observable market data.                                                |

| ● | Level                                                     
 3 – inputs to the valuation methodology are unobservable. |

Unless otherwise disclosed, the fair values
of the Company’s financial instruments including cash and cash equivalents, accounts payable, accrued expenses and other payables
and amount due to a related party are approximated to their recorded values due to their short-term maturities. The carrying amount of
operating lease liabilities approximate their fair values since they bear an interest rate which approximates market interest rates.

<div align='center'>F-11</div>

The Company accounts for revenue recognition
under Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). Revenue from contracts with
customers is recognized using the following five steps:

| 1. | Identify                         
 the contract(s) with a customer