Company: NIVFW
Filing Date: 2025-03-07
Form Type: F-1
Source: 0001213900-25-021404
Chunk: 223

Company: NewGenIvf Group Ltd
Filing Date: 2025-03-07
Form: F-1
Chunk 223
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 stated at
the lower of cost and net realizable value. Costs are determined on a first-in, first-out basis. Net realizable value is based on
the estimated selling prices less any estimated costs to be incurred to completion and disposal. A provision for excess and obsolete
inventory will be made based primarily on forecasts of product demand. The excess balance determined by this analysis becomes the basis
for excess inventory charge and the written-down value of the inventory becomes its cost. Written-down inventory would not
be reversed if market conditions improve.

Other borrowings

Other borrowings are recognized
initially at fair value, net of debt issuance costs incurred. Other borrowings are subsequently stated at amortized cost; any difference
between the proceeds (net of debt issuance costs) and the redemption value is recognized in the consolidated statements of operations
over the period of the borrowings using the effective interest method.

Ordinary shares

After merger, the Company’s ordinary share has no par value.

Revenue recognition

The Company adopted ASC
Topic 606, Revenue from Contracts with Customers, and all subsequent ASUs that modified ASC 606 on April 1, 2017 using
the full retrospective method which requires the Company to present the financial statements for all periods as if Topic 606 had
been applied to all prior periods. The Company derives revenue principally from provision of In vitro fertilization (“IVF”)
treatment and surrogacy and ancillary caring services. Revenue from contracts with customers is recognized using the following five steps:

| (1) | identify its contracts 
 with customers;        |

| (2) | identify its performance           
 obligations under those contracts; |

| (3) | determine the transaction  
 prices of those contracts; |

| (4) | allocate the transaction                                      
 prices to its performance obligations in those contracts; and |

| (5) | recognize revenue when                                                                                                              
 each performance obligation under those contracts is satisfied. Revenue is recognized when promised services are transferred to the 
 client in an amount that reflects the consideration expected in exchange for those services.                                        |

The Company enters into
service agreements with its customers that outline the rights, responsibilities, and obligations of each party. The agreements also identify
the scope of services, service fees, and payment terms. Agreements are acknowledged and signed by both parties. All the contracts have
commercial substance, and it is probable that the Company will collect considerations from its customers for service component.

F-45 NEWGENIVF GROUP LIMITED
NOTES TO THE UNAUD