Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 41

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 41
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 of March 31, 2023, three suppliers accounted for approximately
37%, 37% and 25% of the Company’s prepayments to suppliers balance, respectively. As of March 31, 2024, one supplier accounted
for approximately 90% of the Company’s accounts payable balance. As of March 31, 2023, three suppliers accounted
for approximately 91% of the Company’s accounts payable balance, respectively.

Inherent risks exist whenever procurement is concentrated with a limited number of suppliers. Our suppliers may fail to meet their procurement obligations, which may adversely affect our business. We do not enter written contracts with any of our suppliers, even though we have a long history of business relationship with our major suppliers. There is no assurance that we can continue to maintain stable and long-term business relationships with any supplier. Failure to maintain existing relationships with the suppliers or to establish new relationships in the future could negatively affect the Company’s ability to deliver products to customers in a price advantageous and timely manner. If the Company is unable to obtain ample supply of goods from existing suppliers or alternative sources of supply, the Company may be unable to satisfy the orders from its customers, and/or could also be pressured to increase its procurement cost, which could materially and adversely affect our business, results of operations and financial condition.

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Our lack of written contracts with some of our suppliers reduces the predictability on our procurement, which could adversely our business operations and growth, because our suppliers could cancel or modify our orders on short notice and without penalty.

We do not have written contracts with any of our suppliers. We frequently operate only based on product orders between us and our suppliers with no minimum requirements. Accordingly, we may be subject to suppliers’ cancellation and changes of orders on short notice. These types of cancellations or changes could result in interruption to our business operations, and loss of revenue and/or significant expenditures of resources and funding that we may be unable to recover.

In addition, in the context where suppliers breach their obligations, such as delay in order delivery, product defect or failure to meet product specifications, it may be challenging for us to claim breach of contract when there is no written agreement.

Our business depends on the continued efforts of our senior management. If one or more of our key executives is/are unable or unwilling to continue in his/her/their present positions, our business may be severely disrupted.

Our business operations depend on the continued services of our senior management, particularly the executive officers named in