Company: OSRH
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045947
Chunk: 288

Company: OSR Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 288
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realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated
costs necessary to make the sale.

h.Equipment and vehicles

Equipment
and vehicles are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.

Depreciation
of all equipment and vehicles is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual
values, over their estimated useful lives as follows:

    Estimated 
useful lives
  
    Vehicle 
    5 years
  
    Office equipment 
    5 years
  
    Facility equipment 
    3 to 13 years

The
assets’ depreciation method, residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.

7

i.Goodwill and intangible assets

Goodwill
represents the excess purchase price over the estimated fair value of net assets acquired in a business combination.

The
Group accounts for intangible assets in accordance with Accounting Standards Codification (ASC) Topic 350, Intangibles – Goodwill
and Other (ASC 350). ASC 350 requires that intangible assets with estimable useful lives be amortized over their respective estimated
useful lives and reviewed for impairment in accordance with accounting standards.

When
impairment indicators are identified, the Group compares the reporting unit’s fair value to its carrying amount, including goodwill.
An impairment loss is recognized as the difference, if any, between the reporting unit’s carrying amount and its fair value, to
the extent the difference does not exceed the total amount of goodwill allocated to the reporting unit.

Indefinite-lived
intangible assets are tested for impairment annually, and more frequently when there is a triggering event. Annually, or when there is
a triggering event, the Group first performs a qualitative assessment by evaluating all relevant events and circumstances to determine
if it is more likely than not that the indefinite-lived intangible assets are impaired; this includes considering any potential effect
on significant inputs to determining the fair value of the indefinite-lived intangible assets. When it is more likely than not that an
indefinite-lived intangible asset is impaired, then the Group calculates the fair value of the intangible asset and performs a quantitative
impairment test.

j.Impairment of long--lived
assets

Long-lived
assets, such as equipment, vehicles and