Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 285

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 285
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 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 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, 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