Company: NIVFW
Filing Date: 2025-06-03
Form Type: 424B3
Source: 0001213900-25-050825
Chunk: 126

Company: NewGenIvf Group Ltd
Filing Date: 2025-06-03
Form: 424B3
Chunk 126
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 to the provision of services to a customer. In these instances,
the Company determines whether it has promised to provide the service itself (as principal) or to arrange for the specified service to
be provided by another party (as an agent). This determination is a matter of judgment that depends on the facts and circumstances of
each arrangement. The Company recognizes revenue from the performance of the procedures and treatment on a gross basis as the Company
is responsible for the fulfillment, controls the delivery of the promised service, and has full discretion in establishing prices and
therefore is the principal in the arrangement.

Lease

NewGenIvf adopted ASU 2016-02, “Leases” (Topic 842). Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as NewGenIvf does not have reasonable certainty at lease inception that these options will be exercised. NewGenIvf generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. NewGenIvf has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term.

As of December 31, 2024,
there were $98,570 ROU assets and $118,757 in lease liabilities based on the present value of the future minimum rental payments of leases,
respectively. NewGenIvf’s management believes that using an incremental borrowing rate of the minimum loan rate and Hong Kong Dollar
Best Lending Rate (“BLR”) minus 0.125% was the most indicative rate of NewGenIvf’s borrowing cost for the calculation
of the present value of the lease payments; the rate used by NewGenIvf was 6.6% and 5.5% respectively.

As of December 31, 2023, there were $283,847 ROU assets and $326,107 in lease liabilities based on the present value of the future minimum rental payments of leases, respectively. NewGenIvf’s management believes that using an incremental borrowing rate of the Hong Kong Dollar Best Lending Rate (“BLR”) minus 0.125% was the most indicative rate of NewGenIvf’s borrowing cost for the calculation of the present value