Company: OSRH
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109054
Chunk: 16

Company: OSR Holdings, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 rate, initially measured using the index or rate at
the lease commencement date;

–Amounts expected to be payable under a Group-provided residual value guarantee; and

–The exercise price of a Group option to purchase the underlying asset if the Group is reasonably certain
to exercise the option.

The ROU asset is initially measured
at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement
date, plus any initial direct costs incurred less any lease incentives received.

For operating leases, the ROU asset
is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus)
any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized
on a straight-line basis over the lease term.

ROU assets are periodically reduced
by impairment losses. The Group uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment
– Overall, to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to recognize.

The Group monitors for events or changes
in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability,
a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount
of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance
is recorded in profit or loss.

10

Operating lease ROU assets are presented
as operating lease right of use assets on the condensed consolidated balance sheets. The current portion of operating lease liabilities
are presented separately on the condensed consolidated balance sheets.

The Group has elected not to recognize
ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Group recognizes the lease payments
associated with its short-term leases as an expense on a straight-line basis over the lease term.

l.Foreign currency translation

The Group has operations in South Korea,
Switzerland, and Germany. Accounting records in foreign operations are maintained in local currencies and remeasured to the US dollars
during the consolidation. Nonmonetary assets and liabilities are translated at historical rates, and monetary assets and liabilities are
translated at exchange rates in effect at the end of the year