Company: NIVFW
Filing Date: 2025-10-31
Form Type: 424B3
Source: 0001213900-25-104469
Chunk: 216

Company: NewGenIvf Group Ltd
Filing Date: 2025-10-31
Form: 424B3
Chunk 216
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 less an allowance for expected credit loss on such receivables. The allowance for expected credit loss
is estimated based upon the Company’s assessment of various factors including historical experience, the age of the accounts receivable
balances, current general economic conditions, future expectations and customer specific quantitative and qualitative factors that may
affect the Company’s customers’ ability to pay. An allowance is also made when there is objective evidence for the Company
to reasonably estimate the amount of probable loss.

Contract liabilities

Contract liabilities represent
considerations received from customers in advance of satisfying the Company’s performance obligations under the contract. These
amounts are expected to be earned within 12 months and are classified as current liabilities.

Expected credit loss

ASU No. 2016-13, Financial
Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments requires entities
to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology
will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss
until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial
assets may be recorded and presented, and that expand disclosures. Expected credit losses are probability-weighted estimates of
credit losses. Credit losses are measured at the present value of all cash shortfalls (i.e., the difference between the cash flows due
to the entity in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective
interest rate of the financial asset.

Retirement benefits in the
form of mandatory government-sponsored defined contribution plans are charged to either expense as incurred or allocated to wages
as part of cost of revenues.

The Company determines its
reportable segments using the management approach based on internal reporting used by the Chief Operating Decision Maker (“CODM”),
comprising the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), for decision-making, resource allocation, and performance
assessment.

The Company does not distinguish
revenues, costs, or expenses by segments, operational or geographical, but reports them in aggregate. Based on this assessment, management
has determined that the Company operates as a single reportable segment under ASC 280. Accordingly, all required segment financial information
is included in the consolidated financial statements. However, we segregate IVF revenue from surrogacy revenue as these two revenue types
are critical to