Company: NIVFW
Filing Date: 2025-10-31
Form Type: 424B3
Source: 0001213900-25-104469
Chunk: 140

Company: NewGenIvf Group Ltd
Filing Date: 2025-10-31
Form: 424B3
Chunk 140
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customer, the Company makes available access to the facility with no further substantial involvement. Revenue is recognized at a point
in time when the facility is made available to the customer at the agreed consideration by the provision of specific address within the
facility as maintained in the patient file. The receipt of consideration is assured as payment is required upfront.

Principal versus agency considerations

The Company follows the guidance
provided in ASC 606, Revenue from Contracts with Customers, for determining whether the Company is the principal or an agent in arrangements
with customers that involve another party that contributes 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