Company: LHI
Filing Date: 2025-02-14
Form Type: DRS/A
Source: 0001213900-25-014190
Chunk: 129

Company: Living Homeopathy International Ltd.
Filing Date: 2025-02-14
Form: DRS/A
Chunk 129
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 tax expense incurred for the first
half of 2023 was not yet paid; and while partially offset by (i) increase in inventories by $175,227 as the Company intended to hold
higher inventories to support promotional activities aimed at stimulating sales during the downturn; (ii) increase in prepayment to suppliers
by $134,724 as products ordered but has not delivered during the period.

Net cash used in financing activities

Net cash used in financing activities was
$320,179 for the six months ended September 30, 2024, which primarily resulted from repayment of $32,040, to Hang Seng Bank Limited in
accordance with the Hang Seng Mortgage Loans, the payment of deferred initial public offering costs of $862,959, which was partially
offset by advances from related parties of $574,820.

Net cash used in financing activities was
$173,580 for the six months ended September 30, 2023, which primarily resulted from repayment of $95,402 to Hang Seng Bank Limited in
accordance with the Hang Seng Mortgage Loans and repayment $78,178 to Mr. To, our Chairman and Chief Executive Officer.

Off-balance Sheet Commitments and Arrangements

As of September 30, 2024 and March 31, 2024,
we have not entered into any material off-balance sheet transactions or arrangements.

We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, we have not entered into any derivative contracts that are indexed to our own shares and classified as shareholders’ equity, or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity, nor do we have any variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.

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Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires that we make estimates and assumptions. In certain circumstances, those estimates and assumptions can affect amounts reported in the accompanying consolidated financial statements and notes. In preparing our financial statements, we have made our best estimates and judgments of certain amounts included in the