Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 240

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 240
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ed 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 market participants at the measurement date. ASC 820 specifies a hierarchy of valuation
techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

| ● | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |

| ● | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. |

| ● | Level 3 – inputs to the valuation methodology are unobservable. |

Unless otherwise disclosed, the fair values of
the Company’s financial instruments including cash and cash equivalents, accounts payable, accrued expenses and other payables and
amount due to a related party are approximated to their recorded values due to their short-term maturities. The carrying amount of operating
lease liabilities approximate their fair values since they bear an interest rate which approximates market interest rates.

<div align='center'>F-11</div>

The Company accounts for revenue recognition under
Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”). Revenue from contracts with customers
is recognized using the following five steps:

| 1. | Identify the contract(s) with a customer; |

| 2. | Identify the performance obligations in the contract; |

| 3. | Determine the transaction price; |

| 4. | Allocate the transaction price to the performance obligations 
 in the contract; and                                          |

| 5. | Recognize revenue when (or as) the entity satisfies a performance 
 obligation.                                                       |

The Company primarily generates revenue from sales
of healthcare products, personal care products and water filters and related products to individuals and distributors. The Company recognizes
revenue when payment is tendered at the point of sale as the performance obligation has been satisfied. The single performance obligation
is satisfied at a point in time when the product has been delivered to the customer and control has been passed to the customer,