Company: LHI
Filing Date: 2025-05-23
Form Type: F-1
Source: 0001213900-25-046955
Chunk: 254

Company: Living Homeopathy International Ltd.
Filing Date: 2025-05-23
Form: F-1
Chunk 254
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 value less costs to sell. There were no impairments of these assets as
of March 31, 2024 and 2023.

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.

<div align='center'>F-10</div>

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 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.

Rental deposits represent
security payments made to lessors for the Company’s entered lease agreements. The Company made such security payments upon the commencement
of the original lease agreement. The security deposit 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.

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