Company: OSRH
Filing Date: 2025-05-28
Form Type: S-1
Source: 0001213900-25-048346
Chunk: 58

Company: OSR Holdings, Inc.
Filing Date: 2025-05-28
Form: S-1
Chunk 58
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 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 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 Korean won 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. Income statement accounts are translated at average rates for the year. Gains or losses from remeasurement
of foreign currency financial statements into the Korean won are included in current results of comprehensive income.

| m. | Revenue     
 recognition |

The Group only has revenue from customers.
The Group recognizes revenue when it satisfies performance obligations under the terms of its contracts, and control of its products is
transferred to its customers in an amount that reflects the consideration the Group expects to receive from its customers in exchange
for those products. This process involves identifying the customer contract, determining the performance obligations in the contract,
determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing
revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in
a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available
to the customer and (b) is separately identified in the contract. The Group considers a performance obligation satisfied once it has transferred
control of a good or product to a customer, meaning the customer has the ability to direct the use and obtain the benefit of the good
or product.

39

| n. | Income 
 taxes  |

Income taxes are accounted for under
the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss
and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities