Company: NIVFW
Filing Date: 2025-09-18
Form Type: F-1
Source: 0001213900-25-088927
Chunk: 142

Company: NewGenIvf Group Ltd
Filing Date: 2025-09-18
Form: F-1
Chunk 142
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 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 of the lease payments; the rate used by NewGenIvf was 5.0%.

Financial instruments

NewGenIvf’s financial
instruments, including cash and cash equivalents, accounts and other receivables, accounts