Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 116

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 116
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ASB ASC 360, “Property, Plant and Equipment”. In evaluating long-lived assets for recoverability, the Company uses
its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15.
To the extent that estimated future undiscounted cash inflows attributable to the asset, less estimated future undiscounted cash outflows,
are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of
such an asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or
abandonment, are reported at the lower of carrying value or fair value less costs to sell. There were no impairments of these assets as
of March 31, 2024 and 2023.

Leases

The Company utilizes ASC 842 to account for leases for all periods presented.

The Company determines if an arrangement is a lease at inception. On the Company’s consolidated balance sheets, right-of-use (“ROU”) assets, current portion of lease liabilities, and non-current portion of lease liabilities are accounted.

ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of 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.

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Quantitative and Qualitative Disclosures about Market Risks

Credit risk

Our assets that are potentially subject to a significant concentration of credit risk mainly consist of cash and cash equivalents and other receivable and other current assets.

The Company believes that
there is no significant credit risk associated with cash in Hong Kong, which were held by reputable financial institutions in the
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