Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 260

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 260
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 to the Company’s reputation. When necessary, the Company will turn to financial institutions and related parties to obtain
short-term funding to cover any liquidity shortage. As of March 31, 2024 and 2023, the major financial obligation is repayment of bank
borrowings, the Company is not expected to have financial difficulties in repayment of bank borrowings.

The Company’s major operations are conducted
in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s
economy may influence the Company’s business, financial condition, and results of operations.

From time to time, new accounting pronouncements
are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise
discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact
on its financial position or results of operations upon adoption.

Recently adopted accounting standards

In June 2016, the FASB issued Accounting Standards
Update No. 2016 - 13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU
2016 - 13”). ASU 2016 - 13 added a new impairment model (known as the CECL model) that is based on expected losses rather than incurred
losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The CECL model applies to
financial assets measured at amortized costs, including loans and accounts receivable. The CECL model does not have a minimum threshold
for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. As
an emerging growth company, the Company was permitted to adopt the new standard for fiscal years beginning after December 15, 2022, including
interim periods within those fiscal years. The Company has early adopted the new standard effective April 1, 2022, which didn’t
have a material impact on the consolidated financial statements.

<div align='center'>F-15</div>

New accounting standards not yet adopted

In November 2023, the FASB issued Accounting Standards
Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The purpose
of the update was to improve financial reporting by requiring disclosures