Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 15

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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                                            rate for the lease. The Group’s incremental borrowing rate for a lease is the rate
                                            of interest it would have to pay on a collateralized basis to borrow an amount equal to the
                                            lease payments under similar terms. Because the Group does not generally borrow on a collateralized
                                            basis, it uses the interest rate it pays on its noncollateralized borrowings as an input
                                            to deriving an appropriate incremental borrowing rate, adjusted for the amount of the lease
                                            payments, the lease term, and the effect on that rate of designating specific collateral
                                            with a value equal to the unpaid lease payments for that lease.

●The lease term for all of the Group’s
                                            leases includes the noncancellable period of the lease plus any additional periods covered
                                            by either a Group option to extend (or not to terminate) the lease that the Group is reasonably
                                            certain to exercise, or an option to extend (or not to terminate) the lease controlled by
                                            the lessor.

9

●Lease payments included in the measurement
                                            of the lease liability comprise the following:

–Fixed
                                            payments, including in-substance fixed payments, owed over the lease term (includes termination
                                            penalties the Group would owe if the lease term reflects the Group’s exercise of a
                                            termination option);

–Variable
                                            lease payments that depend on an index or 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