Company: NIVFW
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001213900-25-033966
Chunk: 91

Company: NewGenIvf Group Ltd
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 91
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to the facility to its customers. Upon request for the service, which is agreed verbally and followed by signed consent form from the
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.