Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 12

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 does not have access to the lessor’s estimated residual value or the amount of the
                                            lessor’s deferred initial direct costs. Therefore, the Group generally uses its incremental
                                            borrowing rate as the discount 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.

8

●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.

●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.