Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 72

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 72
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 sales increased by $375,389, or 28%, compared to the same period in the prior year. As a result, gross profit decreased by $270,654,
or 57%. 

27

Selling, General and Administrative Expenses

For the three months ended June 30, 2025, OSR Holdings’ selling,
general and administrative (SG&A) expenses increased by $1,819,532, or 53%, compared to the same period in the prior year. The increase
was primarily attributable to the completion of the Business Combination on February 14, 2025, which resulted in the consolidation of
OSR Holdings Inc. (formerly Bellevue Life Sciences Acquisition Corp.) beginning in the second quarter. The largest component of the increase
was higher commissions and professional fees incurred in connection with the Business Combination.

For the six months ended June 30, 2025, OSR Holdings’ selling, general
and administrative (SG&A) expenses increased by $1,363,713, or 20%, compared to the same period in the prior year. The increase was
primarily driven by higher personnel-related expenses, including salaries, severance payments, employee benefits, bonuses, and travel
costs. Additional SG&A expenses included amortization of intangible assets, research and development expenses, and professional service
fees, such as legal, audit, investor relations, and press release costs, as well as non-income taxes, insurance premiums, and employee
recruiting and training expenses. The most significant drivers of the increase were personnel-related costs and professional service
fees.

Research and Development (R&D) Expenses

OSR Holding’s R&D expenses consisted primarily of development
costs associated with our product candidates in pre-clinical and clinical trials, and related costs of salaries and contractors. R&D
costs are expensed as incurred. OSR Holdings expects to incur and report R&D related expenses mainly from its subsidiaries actively
engaged in R&D at an estimated amount of $2.5 million to $3.0 million per quarter beginning in the second half of 2025,
which could potentially increase to $5.0 million to $6.0 million per quarter.

Operating Loss

For the three months ended June 30, 2025, OSR Holdings’ operating
loss increased by $2,019,069, or 63%, compared to the same period in the prior year. On a year-to-date basis, operating loss