| Summary of significant accounting policies | Note
3 – Summary of significant accounting policies Basis
of presentation The
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the Securities
Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements as of June 30, 2024, and for the six
months ended June 30, 2024 and 2023 reflect all adjustments (consisting of only normal recurring adjustments) considered necessary to
present fairly the financial position, results of operations and cash flow for such interim periods. The results of operations for the
six months ended June 30, 2024 are not necessarily indicative of results to be expected for the full year of 2024. Certain information
and footnote disclosures normally included in the consolidated financial statements prepared in conformity with U.S. GAAP have been condensed
or omitted pursuant to such rules and regulations. Accordingly, these unaudited condensed consolidated financial statements should be
read in conjunction with the Company’s audited financial statements and the notes thereto, included in the Form 20-K for the fiscal
year ended December 31, 2023, which was filed with the SEC on May 9, 2024. Principles
of consolidation The
unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions
and balances among the Company and its subsidiaries have been eliminated upon consolidation. EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) A
subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power
to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast
a majority of votes at the meeting of directors. Use
of estimates The
preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of
the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods
presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include
lease classification and liabilities, right-of-use assets, determinations of the useful lives and valuation of long-lived assets, fair
value of the identifiable intangible assets through assets acquisition, estimate of the useful life of the intangible assets, estimates of allowances for credit losses, estimates
of impairment of long-lived assets, valuation of deferred tax assets, other provisions and contingencies, estimated fair value of earn-out
shares, prepaid forward purchase liability and private warrants. Actual results could differ from these estimates. Non-controlling
interests For
the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect portion of equity that is not
attributable, directly or indirectly, to the Company. The cumulative results of operations attributable to non-controlling interests
are also recorded as non-controlling interests in the Company’s unaudited condensed consolidated balance sheets and unaudited condensed
consolidated statements of operations and comprehensive income (loss). Cash flows related to transactions with non-controlling interests
are presented under financing activities in the unaudited condensed consolidated statements of cash flows. Segment
reporting The
Company uses the management approach in determining its operating segments. The management approach considers the internal reporting
used by the Company’s chief operating decision maker (“CODM”). The Company’s CODM has been identified as the
CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing
performance of the Company. Management has determined that the Company has one operating segment, which is the property management services
segment, following the discontinuation of its medical service operations in September 2023. Previously, the medical service operations
included the healthcare specialty group (excluding general practice) that offered a range of specialty care services, as well as a general
practice clinic providing holistic care for various illnesses. As
described in Note 4, in September 2023, the Board resolved on the plan to streamline its medical services practice, which business was
carried through subsidiaries of KRHSG, EUDA PL, ZKTV PL, SEMA, ED PL, KR Hill PL, ZKT PL, KR Digital, and Zukihealth, as the Company
is in the process of transitioning its business to other medical service fields. The streamlining of the Company’s medical services
practice was accounted for as a discontinued operation because it represented a strategic shift that had a major effect on the Company’s
unaudited condensed consolidated financial statements in accordance with ASC 205-20-45. Upon the completion of the streamlining, the
Company reorganized its business to become a single reportable segment: property management services. This segment structure reflects
the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker (“CODM”),
to make decisions regarding the Company’s business, including resource allocations and performance assessments. All assets and
continuing operations of the Company are physically located or domiciled in Singapore. Consequently, no geographic information is presented. EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) Acquisitions
of Assets The
Company applies the definition of a business in ASC 805, Business Combinations, to determine whether it is acquiring a business or a
group of assets. When an acquired group of assets does not constitute a business, the transaction is accounted for as an asset acquisition.
The cost of assets acquired and liabilities assumed in asset acquisitions is allocated based upon relative fair value. In the event that
the cost of the asset acquisition exceed the fair value of the individual assets acquired and liabilities assumed, any excess cost over
fair value should generally be allocated to the acquired assets on a relative fair value basis. This may result in certain assets being
recognized in excess of their fair values, as measured in accordance with ASC 820. Cash Cash
represents cash on hand and demand deposits placed with banks or other financial institutions which are unrestricted as to withdrawal
or use and have original maturities less than three months. Accounts
receivable, net Accounts
receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due
after 30 to 90 days, depending on the credit term with its customers. Management reviews the adequacy of the allowance for credit losses
on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s
financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary.
On January 1, 2023, the Company adopted the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for
the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The
Company used a modified retrospective approach and the adoption does not have an impact on the Company’s unaudited condensed consolidated
financial statements. The Company’s accounts receivable and other receivables are within the scope of ASC Topic 326. To estimate
expected credit losses, the Company has identified the relevant risk characteristics of the receivables which include size and nature.
Receivables with similar risk characteristics have been grouped into pools. For each pool, the Company considers the past collection
experience, current economic conditions and future economic conditions (external data and macroeconomic factors). This is assessed at
each quarter based on the Company’s specific facts and circumstances. There have been no significant changes in the assumptions
since adoption. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential
for recovery is considered remote. The Company’s management continues to evaluate the reasonableness of the valuation allowance
policy and update it if necessary. Allowance for credit losses amounted to $ 2,438 2,504 Prepayments Prepayments
are mainly cash advanced to suppliers for inventories and fixed assets purchases. For any prepayments determined by management that such
advances will not be in receipts of inventories, fixed assets, or refundable, the Company will recognize an allowance account to reserve
such balances. Management reviews its prepayments on a regular basis to determine if the allowance is adequate, and adjusts the allowance
when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that
the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation
allowance policy and update it if necessary. As of June 30, 2024 and 2023, no allowance for doubtful account was recorded. Other
receivables Other
receivables primarily include receivables from employee advance, and refundable deposits from third party service providers. Management
regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of
amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection
are made. As of June 30, 2024 and December 31, 2023, no EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) Prepaid
expenses and other current assets Prepaid
expenses and other current assets primarily include prepaid expenses paid to services providers, and other deposits. Management regularly
reviews the aging of such balances and changes in payment and realization trends and records allowances when management believes collection
or realization of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts
at collection are made. As of June 30, 2024 and December 31, 2023, no Long-term
investment On
November 4, 2020, UG Digitech Private Limited (“UGD”), the Company’s 98.3 60 26 2.0 40 60 113,405 60 0 38.3 Property
and equipment, net Property
and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated
useful lives of the assets with no residual value. The estimated useful lives are as follows: Schedule
of property and equipment useful lives
Expected
useful lives
Office
equipment 3
Leasehold
improvement Shorter
of the lease term or 5 years The
cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is
included in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Expenditures for maintenance
and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life
of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances
warrant revised estimates of useful lives. The
Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows
that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which
the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the six months ended
June 30, 2024 and 2023, there was no Intangible
assets, net Purchased
intangible assets are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable
lives continue to be amortized over the Company’s best estimate of its useful life as follows: Schedule
of intangible assets net
Categories Useful
life
Distribution
rights 2 3
Software 5 years The
Company amortizes intangible assets in accordance with ASC Topic 350, ‘Intangibles - Goodwill and Other.’ Distribution rights are amortized
based on the pattern in which the economic benefits are consumed, while software is amortized on a straight-line basis over its expected
useful life. Separately
identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future
cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for identifiable intangible
assets is based on the amount by which the carrying amount of the assets exceeds the fair value of the assets. $ 14,755,560 nil EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) Impairment
for long-lived assets In
accordance with ASC 360-10, Long-lived assets, including property and equipment, intangible assets with finite lives, and right of use
assets are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions
that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses
the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment
loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition
of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying
amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable
market values. For the six months ended June 30, 2024 and 2023, $ 14,755,560 0 Warrants The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) ASC 480, Distinguishing
Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers
whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480,
and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed
to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement”
in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires
the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while
the warrants are outstanding. For
issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component
of equity at the time of issuance. The Company determined that upon further review of the warrant agreements, the Company concluded that
its warrants qualify for equity accounting treatment. Upon
completion of the business combination, all of 8i’s public and private warrants remain outstanding were replaced by the Company’s
public and private warrants. The Company treated such warrants replacement as a warrant modification and no incremental fair value was
recognized. Forward
Purchase Receivables and Prepaid Forward Purchase Liabilities The
Company recorded forward purchase receivables amounted to nil 2.50 EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) In
connection with the forward purchase agreement, the Company recognized a liability in accordance with ASC 480-10-25-8, as the Company
is obligated to settle the Maturity Consideration in cash. This liability, referred to as the ‘prepaid forward purchase liability,’
was recorded on the Company’s consolidated balance sheets at $ 0 Revenue
recognition The
Company follows the revenue accounting requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts
with Customers (Topic 606) (“Accounting Standards Codification (“ASC”) 606”). The core principle underlying the
revenue recognition of this ASU allows the Company to recognize - revenue that represents the transfer of goods and services to customers
in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company
to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based
on when control of goods and services transfers to a customer. To
achieve that core principle, the Company applies five-step model to recognize revenue from customer contracts. The five-step model requires
that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine
the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not
occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when
(or as) the Company satisfies the performance obligation. The
Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment
terms, are identified, the contract has commercial substance and collectability is probable. Revenue
recognition policies for the revenue stream is as follows: Property
Management Services -
Performance obligation satisfied over a period of time The
Company provides property management services in shopping malls, business office building, or residential apartments to all tenants and
property owners. Property management services include common area property management services that contain cleaning, landscaping, public
facilities maintenance and other traditional services and also include security property management services provided to all tenants
and property owners. Each of the two services is within separate agreements. The Company identified common area property management services
as a single performance obligation as the kinds of service in the contract are not capable of being distinct and identified the security
management services as another single performance obligation as there is only one service that is to provide security services. The
Company recognizes the common area property management revenue and security property management revenue on a straight-line basis over
the terms of the common area property management agreement and security property management agreement, generally over one year period
because its customer simultaneously receives and consumes the benefits provided by the Company throughout the performance obligations
period. The
Company has elected to apply the practical expedient to expense costs as incurred for incremental costs to obtain a contract when the
amortization period would have been one year or less. As of June 30, 2024, and December 31, 2023, the Company did not have any contract
assets. The
Company recognized advance payments from its customer prior to revenue recognition as contract liability until the revenue recognition
performance obligation are met. As of June 30, 2024, and December 31, 2023, the Company did not have any contract liability. Disaggregated
information of revenues by products/services are as follows: Schedule
of revenue
For
the Six Months Ended June
30,
2024 2023
(Unaudited) (Unaudited)
Property management service –
common area management $ 1,379,191 $ 1,311,964
Property management service
– security management 528,857 491,046
Total
revenues $ 1,908,048 $ 1,803,010 EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) Cost
of revenues Property
Management Services Cost
of revenues mainly consists of labor expenses incurred attributable to property management service. Disaggregated
information of cost of revenues by products/services are as follows: Schedule
of cost of revenue
For
the Six Months Ended June
30,
2024 2023
(Unaudited) (Unaudited)
Property management service –
common area management $ 1,016,054 $ 956,684
Property management service
– security management 449,922 402,636
Total
cost of revenues $ 1,465,976 $ 1,359,320 Advertising
costs Advertising
is mainly through online and offline promotion activities. Advertising costs amounted to $ 9,494
and $ 8,024 Defined
contribution plan The
full-time employees of the Company are entitled to the government mandated defined contribution plan. The Company is required to accrue
and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in
accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan.
Total expenses for the plans were $ 172,982 and $ 159,548
for the six months ended June 30, 2024 and 2023,
respectively. The
related contribution plans include: Singapore
subsidiaries -
Central Provident Fund (“CPF”) – 17.00% based on employee’s monthly salary for employees aged 55 and below, reduces
progressively to 7.5% as age increase; -
Skill Development Levy (“SDL”) – up to 0.25% based on employee’s monthly salary capped approximately $8.3 (SGD
11.25) for each employee. Goods
and services taxes (“GST”) Revenue
represents the invoiced value of service, net GST. The GST are based on gross sales price. GST rate is generally 9 7 Income
taxes The
Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for
the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted
or substantively enacted by the balance sheet date. Deferred
tax is calculated using the balance sheet liability method in respect of temporary differences arising from differences between the carrying
amount of assets and liabilities in the unaudited condensed consolidated financial statements and the corresponding tax basis. In principle,
deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that
it is probable that taxable income will be utilized with prior net operating loss carried forwards using tax rates that are expected
to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement,
except when it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation allowance when,
in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be utilized. Current
income taxes are provided for in accordance with the laws of the relevant tax authorities. EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) An
uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that
is more-likely-than-not of being realized on examination. For tax positions not meeting the “more likely than not” test,
no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax for the six months ended June 30,
2024 and 2023. As of June 30, 2024, the tax returns of the Company’s Singapore entities for the calendar year from 2020 through
2023 remain open for statutory examination by Singapore tax authorities. The
Company recognize interest and penalties related to unrecognized tax benefits, if any, on the income tax expense line in the accompanying
unaudited condensed consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line
in the unaudited condensed consolidated balance. The
Company conducts much of its business activities in Singapore and is subject to tax in its jurisdiction. As a result of its business
activities, the Company’s subsidiaries file separate tax returns that are subject to examination by the foreign tax authorities. Discontinued
operations A
discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity.
A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operation if
the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results
when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified
as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an
entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners
in a spinoff). Comprehensive
loss Comprehensive
loss consists of two components, net income and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains
and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive
loss consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. Loss
per share The
Company computes (loss) earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260
requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary share
outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible
securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.
Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are
excluded from the calculation of diluted EPS. EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) The
Company calculates basic and diluted (loss)/earnings per share for continuing operations as follows: Schedule
of basic and diluted earnings per share
For
the Six Months Ended June
30,
2024 2023
(Unaudited) (Unaudited)
Numerator
Net loss from continuing operations $ (16,748,274 ) $ (7,189,765 )
Less: Net (loss) income
attributable to noncontrolling interest from continuing operations (5,118 ) 1,132
Net loss attributable
to common shareholders, basic $ (16,827,829 ) $ (8,514,303 )
Denominator
Weighted average number of shares outstanding,
basic and diluted 28,370,557 21,125,241
Loss earnings per share,
basic and diluted $ (0.59 ) $ (0.34 ) The
Company calculates basic and diluted (loss)/earnings per share for discontinued operations as follows:
For
the Six Months Ended June
30,
2024 2023
Numerator
Net loss attributable to common
shareholders, basic $ (84,673 ) $ (1,323,406 )
Denominator
Weighted average number of shares outstanding,
basic and diluted 28,370,557 21,125,241
Loss earnings per share,
basic and diluted $ (0.00 ) $ (0.06 ) As
of June 30, 2024, the Company had dilutive securities from the outstanding convertible notes and warrants convertible into 459,142 4,458,625 Fair
value measurements Fair
value is defined as the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between
market participants at the measurement date. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable
inputs. When determining the fair value measurements for assets and liabilities, we consider the principal or most advantageous market
in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The following
summarizes the three levels of inputs required to measure fair value, of which the first two are considered observable and the third
is considered unobservable: Level
1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level
2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that
are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term
of the assets or liabilities. Level
3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or
liabilities. The
fair value for certain assets and liabilities such as cash and restricted cash, accounts receivable, net, other receivables, prepaid
expenses and other current assets, loan to third-party, short-term loans, promissory note, convertible notes, accounts payable, other
payables and accrued liabilities, and tax payables have been determined to approximate carrying amounts due to the short maturities of
these instruments. The Company believes that its long-term loan to third party approximates the fair value based on current yields for
debt instruments with similar terms. EUDA
HEALTH HOLDINGS LIMITED AND SUBSIDIARIES NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In
U.S. dollars, unless stated otherwise) The
Company did not have any financial assets or liabilities that were accounted for at fair value on a recurring basis as of June 30, 2024
and December 31, 2023. Leases The
Company accounts for leases in accordance with ASC 842. The Company entered into three agreements as a lessee to lease office equipment
for general and administrative operations. If any of the following criteria are met, the Company classifies the lease as a finance lease:
● The
lease transfers ownership of the underlying asset to the lessee by the end of the lease term;
● The
lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise;
● The
lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the
last 25% of the economic life of the underlying asset;
● The
present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or
● The
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